Managed Office Space
What is Managed Office Space?
Managed office spaces are operated by a third party who acts as an intermediary between the occupier, the owner of the premises, and service providers. These offices are run by professional facilities management companies that ensure basic tenant requirements are met by the time they move in.
The majority of managed offices feature telecommunications cabling and workspace partitions, and can then be fitted out by the management company to suit the tenant's needs. Therefore, this is a bespoke office solution with greater tenant input than serviced offices and with more support than conventional office space.
Typical occupiers are companies that need medium-term office space that's already equipped with basic amenities, but that at the same time offers scope for personalisation. Managed office tenants must have the financial ability to invest in capital expenditure, although the initial expenses aren't as high as those involved in traditional offices.
In the UK, managed offices are mostly a solution for SMEs or businesses in their scale-up stages. The average lease term ranges from 12 to 18 months.
The Advantages of Managed Offices
Managed offices allow businesses to access office space without needing to commit to a long-term lease. There's also a financial incentive since set up costs are low, which may be appealing to small businesses and those in their initial stages.
Moreover, the managed office model offers occupiers more freedom to choose their own service providers. Unlike in serviced offices (where there may be a slight mark-up on utility costs in exchange for having them ready to use), managed office tenants can arrange to have their own broadband and phone providers.
What is the Difference between Managed and Serviced Offices?
Managed and serviced offices are both a flexible space solution. They're similar to each other in that they cater to businesses in search of short or medium-term office leases. However, they're not exactly the same.
One of the main differences is that managed offices usually operate on vacant commercial space that has been renovated or refurbished, whereas most of the time, serviced offices are specifically built to meet the needs of office occupiers. This also means that serviced offices are pre-designed, while managed offices do offer a greater degree of customisation.
These two flexible office solutions also differ in the levels of support and equipment they offer. For example, serviced offices are ready to move in and fitted with all the furniture, meeting rooms, common areas, and telecommunications equipment needed. On the other hand, managed offices are set up at a more basic level and the occupier is responsible for arranging their own workstations and telecommunications service providers.
Due to the above, businesses can move into a managed office within weeks of signing the lease, instead of days or hours as is the case of serviced offices. Another difference between these two options is that serviced office fees are usually inclusive of additional services, such as cleaning, a staffed reception, clerical support, and utilities, etc., but this is not the case with managed offices. And if you're trying to decide between a serviced office and a managed office, you'll want to keep in mind that the cost of serviced offices is calculated based on occupancy numbers (per desk or person). Managed office fees are not per desk, but rather taking into account the square footage used.
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