There is often confusion around the differences between serviced offices and managed offices.
As a business owner, you may be wondering which type of London office space best suits the needs of your industry, employees, and clients. So we have delved into what serviced and managed offices are and their differences, benefits, and disadvantages to help you make an informed decision.
What is a serviced office?
A serviced office is a flexible workspace a business can rent short-term, perfect for startups where employee numbers may fluctuate.
Flexible and serviced offices provide businesses with fully equipped office spaces ready to use, eliminating the need to set up and maintain their physical systems.
These offices also come with IT and telecoms infrastructure installed.
If you opt for a flexible and serviced office, you will pay a monthly, all-inclusive cost, covering rent, utilities, and other amenities; there are no hidden fees, enabling you to know exactly what you are paying for.
With most of these offices, you can personalise your space and incorporate your brand to promote your company culture.
You will also have on-hand support to help you manage the daily operations of your business.
What are the benefits of a serviced office?
A serviced office space has many benefits, some of which we have mentioned already. However, we have summarised a few of these below.
Plug and play
Since serviced offices tend to come with essential furniture, such as desks and chairs, and IT and telecoms infrastructure installed, you and your team can get working with ease.
Flexibility
With no long-term and complex contracts, you can scale up or down when necessary.
All-inclusive
You will not be surprised by hidden costs and will know exactly what you are paying for.
Collaborative opportunities
You can share serviced office space with other businesses, increasing your level of networking.
What are the disadvantages of a serviced office?
With any office rental, there are pros and cons. Be fully aware of these to help you rent the best office space for your business. Below are some of the disadvantages of renting a serviced office.
Limited opportunities for branding
Whilst many providers encourage tenants to decorate their office, you will not have a blank canvas to work from, making incorporating your brand more challenging. You may also decide to be there short-term, so you will have to start over again when you move office and try to put your stamp on a new space.
Extra expenses
While you will only have one all-inclusive cost, meeting rooms or event space will cost extra. It may be more expensive than renting office space without included costs.
Featured Serviced Office Space – Pennine Place
If you want to rent a serviced office that can make a statement to employees and clients, look no further than Pennine Place, opposite the National Portrait Gallery.
This Grade 2 listed building is a short walk from Leicester Square, Charing Cross and Embankment tube stations and consists of fabulous breakout spaces, including a gym and table tennis room.
Also, if you are big on sustainability, you will love the private club, which concentrates on the environment whilst still delivering luxury.
Pennine Place has office space for a team of 3 to 14 people, making it perfect for a startup.
Some of the other features include the following:
- Meeting room.
- Bike storage.
- Showers.
- Event space.
- Parking.
- Kitchen.
What is a managed office?
A managed office refers to purpose-built office spaces offering tenants more control over their work environment.
Unlike serviced offices, managed offices are empty spaces that can be customised and furnished according to the specific needs and preferences of the occupant. While some essential cabling and furniture may be provided, the tenant will often need to add additional items.
Effectively, a managed office space gives your business a blank canvas to work from, enabling you to incorporate your brand easily, and providing the freedom to tailor your space to your requirements to ensure optimised productivity.
What are the advantages of a managed office?
Below are just some of the benefits of renting a managed office space:
Bespoke fit-out
You can fully incorporate your brand with your furniture and interior design choice.
Increased privacy
Since you will have greater control over your space, you will also have more privacy.
Flexibility
As with serviced offices, you won’t be tied into any long-term, complex contracts.
What are the disadvantages of managed office space?
Of course, renting a managed office space has a couple of disadvantages. Below are some of the drawbacks that you should be aware of.
More commitment
As mentioned, you will not be tied into a long-term contract when renting a managed office space. You will, however, need to commit more as you will have a better opportunity to showcase your brand to potential clients.
Set-up time can be lengthy
You cannot move in and start working instantly. Managed offices take more time to bring in the required furniture, set up IT and telecoms infrastructure, and work out the overall functionality of the space.
Featured Managed Office Space – Dowgate Hill
Whether you have a team of 2 or 120, Dowgate Hill is an ideal managed office space for startups and well-established businesses alike.
Furthermore, Dowgate Hill is just a 1-minute walk from London Cannon Street railway station, so your employees can easily commute.
Below are some of the other features this space offers:
- Meeting rooms.
- Breakout spaces.
- Gym.
- Bike storage.
- Kitchen.
- Parking.
What type of office is best?
A serviced office vs a managed office, which will suit you better? This depends on many factors, such as your business’s needs and priorities.
For example, if you are time-limited, i.e. you need your office space as soon as possible for your employees to work and make money, a serviced space is probably more appropriate.
Also, if you own a startup but have a high growth forecast, the flexibility of a serviced office may be more suitable to that of a managed space.
A managed office space will be ideal if yours is an established business. You can commit long-term to the office space, so the time and effort you put into its design and functionality will be worthwhile.
If you have read this blog but still have more questions, contact DeVono today; we will be happy to assist with your office rental needs. We provide a wide range of offices available to rent in London, so whether you are a startup or a long-standing business, we can help you find your dream space.
