As the world of flexible working evolves, so do the flexible workspace solutions, offering occupiers a greater choice. CORE Working recognises the importance of understanding the options available to ensure occupiers make the right choice for their business. To help with this, we want to highlight the differences between two of the major types of flexible offices, a serviced office vs a managed office.
A serviced office is a private workspace that is fully serviced and managed by an office provider, whereby an occupier pays a monthly fee which covers a variety of services. Usually, this includes furniture, WiFi, cleaning, utilities, and basic occupational costs (rent, business rates and service charge) as well as on-site maintenance and visitor management. Depending on the provider, the monthly fee can also include access to a co-working/break out area, access to other locations managed by the same provider, and networking events for tenants within the same building.
Serviced offices typically feature shared amenity space for occupiers, such as break-out spaces, meeting rooms, phone and working booths, lounge areas and co-working areas and are usually branded by the office provider managing the space. The offices are let on a licence contract, ranging from monthly contracts up to 24 or even 36 months, offering the greatest flexibility for businesses. CORE Working typically find serviced offices are suitable for businesses with up to 200 people, although solutions can be found for a variety of businesses. Within a Serviced Office, there is normally minimal or no opportunity for any form of branding anywhere other than within your own office. The ability to alter the space is also extremely limited with any changes needing to be carried out by the centre operator.
A managed office is a workspace that offers businesses their own space, whilst also benefitting from an all-inclusive monthly fee and a management service which usually includes furniture, utilities, cleaning, WiFi, and the standard occupational costs. The major difference between a managed office is that it provides an opportunity for occupiers to completely personalise an office space as well as pick and choose which management services they want, so that as soon you walk through the front door of the office, you’re in your office, with your own branding and company identity. There is also no shared space within the workspace, offering greater privacy and security.
A managed office can be let on a licence agreement or a short-term lease and typically are agreed over a longer term compared to a serviced office agreement, usually between 2-5 years, as occupiers look to benefit from their customised space. With this, a managed office has often been described as a hybrid of a serviced office and a traditional leased office. It is often possible to make more changes to the space and to make your own alterations (subject to Landlord’s consent, which might need to be negotiated at the start of the lease).
Some providers of managed offices are now creating communal amenity hubs within their estates, which offer co-working space and larger, bookable boardrooms, improving their offer for occupiers.
Serviced and managed offices do share some similarities in that they aim to provide businesses with flexibility and all-inclusive fees. The major difference is that a managed office is a more personal workspace, enabling occupiers to brand a space and make it their own, however, they are usually agreed over a longer term. A serviced office provides a more flexible solution, with licenses often available on a monthly basis, and access to communal co-working areas and meeting rooms.
Every occupier is unique, and finding the right flexible solution is essential for all businesses. CORE Working would be happy to discuss the options available and help you establish what would be the right solution for your business.
