When searching for a private, flexible office space to rent, the two most obvious solutions are serviced and managed office spaces. But what is the difference, and what is the best option for you?
This article will break down the definition of each workspace and how they compare. We will also offer an insight into the most popular areas in London to find serviced and managed offices.
What is a serviced office?
A serviced office is a fully furnished workspace in a building that offers access to shared facilities like breakout areas and meeting rooms. These offices are run and maintained by the providers, offering a plug-and-play set-up for immediate occupancy.
What is a managed office?
A managed office is a self-contained workspace that includes dedicated facilities. The space is still managed by a provider but can be customised to meet specific business requirements. Managed offices can be considered a “blank canvas”.
What is the difference between a serviced and a managed office?
Serviced offices are ready-to-go workspaces with shared facilities, such as toilets, meeting rooms and kitchens. Managed offices are ready-to-go with their own dedicated facilities inside the workspace.
How They Compare with Customisation
Serviced Offices
Serviced office workspaces are usually furnished with a standard layout offering minimal customisation options. However, the bigger the serviced office, the more common it is to have the space customised.
A space for 4 desks would typically be a standard solution for serviced, but a company wanting a space for 50 to 100 people would often have a bespoke layout and furniture.
Companies can brand their space, add soft furnishings and configure the workstations as needed. However, structural changes may not be permitted. As a result, businesses can usually move into a serviced office within a few days.
Managed Offices
Managed offices are either ready to go or ready for a bespoke fit-out. You have greater freedom to design the layout to include breakout spaces, meeting rooms and even server rooms exactly where you’d like them.
Customisation can include bespoke furniture, branding and specific lighting in designated areas. Due to this, the average setup time for a managed office can range from 4 to 8 weeks.
The Cost of Serviced vs Managed Offices
Serviced Offices
Serviced offices are priced per desk and include all costs in a single monthly bill. According to our pricing tool data, the average cost of a desk in a private, serviced office in Central London is £634 per month. The price includes rent, utilities, cleaning, internet, and access to shared facilities within the business centre.
Managed Offices
Managed offices are usually priced per square foot. In Central London, the average price per square foot is £80 per year, which equates to £333 per desk, per month. This is more cost-effective than serviced offices. Some providers will include the cost of the fit-out in the pricing, whereas some may not, but you should always check with your provider.
When comparing the cost of serviced and managed spaces, it is essential to note that the price of a managed office includes dedicated facilities, so the price you pay “per desk” includes meeting rooms, breakout spaces, toilets and kitchens.
Flexibility & Contract Length
Serviced Offices
Serviced offices offer more flexibility than managed spaces, as providers can offer monthly rolling contracts. This means that notice periods are also generally shorter, around 1 to 2 months, depending on the provider.
Managed Offices
Managed office contracts usually start from a minimum of 12 months. This longer-term contract enables tailored fit-outs and provides businesses with greater stability. Notice periods are slightly longer than those for serviced offices, ranging from 3 to 6 months.
Which option is right for you?
Serviced Offices
We have found that most startups and freelancers who enquire about office space are looking for serviced offices over managed spaces. This is generally because they want more flexibility and a fast move-in time.
Managed Offices
Most of the enquiries we receive for managed spaces are from larger, more established businesses seeking a customisable layout with dedicated facilities and longer contracts.
However, we have seen a few exceptions. Some smaller teams have enquired about managed space for their dedicated facilities, whereas some larger organisations have chosen a serviced space for speed and convenience.
Where to Find Serviced & Managed Workspaces for Rent in London
You can find 100’s of serviced and managed spaces on our website, so start your search here.
Serviced Offices
There has been a surge in serviced offices in areas like Shoreditch and Clerkenwell. These areas are renowned for their creativity and are popular among startups, media companies, and tech firms.
Similarly, Canary Wharf and Mayfair continue to attract finance and insurance companies seeking high-end office space with prestigious postcodes.
Managed Spaces
Managed offices are on the rise in areas like the City and King’s Cross. These locations are popular with established businesses looking for bespoke spaces on longer contracts.
A large percentage of our managed office enquiries are for these areas, so it is understandable why there has been an increase in managed spaces here.
Choosing between serviced and managed offices can be difficult. The right decision should be based on your budget, long-term business goals and your customisation requirements.
If you’re looking for more information on managed offices, we’ve written an in-depth guide that covers the advantages, disadvantages and the most frequently asked questions we get.
Whichever option you choose, there’s a wealth of spaces available across London and the UK.
Still unsure which is right for you? Contact us today or view our full list of serviced and managed offices for rent.
