The landscape of work has shifted. The days when a business had to commit to a decade-long lease for a grey shell of a building are fading. Instead, a more agile, business-focused office leasing model has emerged.
For business leaders today, the choice often falls between two distinct paths: the control of a traditional lease or the agility of a flexible serviced office. While both provide a roof over your head, the similarities often end there.
Understanding the nuance between serviced office vs traditional office models is crucial - not just for your bottom line, but for your ability to attract talent and adapt to changing markets.
At its core, the difference lies in ownership and responsibility. A traditional (or conventional) office is typically leased directly from a landlord, with most leases locking you in for 5 years at a time, with very little flexibility to change. You rent the empty space - often just the floor, ceiling, and walls. Want extra space for kitchens, meeting rooms or breakout spaces? You’ll need to pay for that too. It’s then your responsibility to fit it out, install IT infrastructure, buy furniture, and manage utilities, cleaning, and maintenance. You effectively ‘own’ the problems of the building for the duration of your lease, and are required to pay for the whole space, even if you don’t actually use all of it.
A serviced office, like those we offer, is a fully equipped workspace managed by a provider. You pay a single monthly fee for the office space you need. With that you get:
You’ll only pay for the space you require, but there's an option to expand should you need to, and also shorter, more flexible contracts available. It’s a ‘work-ready’ solution where you can move in and start working immediately.
| Feature | Serviced Office (Flexible) | Traditional Office (Conventional) |
| Lease Length | Flexible (3-24 months) | Long-term (Typically 3–10 years) |
| Upfront Costs | Low | High (Fit-out, legals, agent fees) |
| Management | Fully managed by provider | Managed by you (or your facilities manager) |
| Space Efficiency | Pay only for private office space; share amenities | Pay for every sq ft, including halls and kitchens |
| Scalability | Scale up or down easily | Fixed space; difficult to expand or downsize |
One of the most critical distinctions is the nature of the contract. A flexible office lease (often technically a licence agreement) is designed for agility, and is something we’re passionate about. It acknowledges that business needs change. According to recent industry data, the average traditional office lease in the UK has crept up to around 3.7 years in 2024. But with flexible agreements businesses are able to commit for shorter periods. Something that can help businesses stay afloat when circumstances change.
With a traditional lease, the headline rent is rarely what you actually pay. You must also factor in:
Costs quickly arise and add up over the length of your fixed tenancy.
With an Orega flexible lease, you get cost certainty. Your monthly invoice includes your rent, rates, utilities, furniture, and concierge services. There are no surprise bills for a broken boiler or a roof leak.
Crucially, with a flex lease, you aren't locked in. If your team grows from 10 to 20 people, you can simply move to a larger office within the same building. There’s also the ability to move to a smaller space within the same building, if downsizing is required, helping you to have minimal disruption.
We know that changing work models means a hybrid approach is becoming more common. We can easily help you adapt your office space and size to reflect a less busy office. This way, you can keep your premium serviced office without losing money on wasted space.
In a traditional lease, expanding or downsizing often means finding a subletter, paying legal fees, and starting the search process all over again. With flex, we adapt with you and can help you find solutions that keep your business moving.
The physical environment of your workplace plays a massive role in staff retention. In a traditional office vs modern office comparison, the serviced model often wins on amenities.
In a traditional lease, if you want a high-end meeting room, a relaxed breakout lounge, or a shower room, you have to build it. This means paying rent on space that sits empty for 90% of the day. This ‘dead space’ is hugely inefficient.
In an Orega serviced office, you have access to:
You essentially get access to a ‘big corporate’ headquarters experience for a fraction of the cost, because you share the amenities rather than funding them solely yourself. This is vital for encouraging a return to the office, as employees increasingly demand workspaces that are better equipped than their homes, foster productivity, and provide space for socialisation.
So, what is the difference between a serviced office and a managed office?
For many businesses, the serviced model remains superior because it removes the burden of design and procurement entirely, allowing leadership to focus on business growth rather than choosing carpet tiles.
The rigid structure of the past is incompatible with the agility required by businesses in all industries today.
Orega’s model aligns with this future. By offering serviced offices in prime locations like London and Manchester, we provide businesses with the prestige of a city-centre address without the restrictions of a long-term lease.
Our flex lease approach means we provide serviced office spaces that will adapt to your business's needs. Our 25 locations across the UK means expanding your team via satellite offices has never been easier. If you’re looking for offices in Leeds, Birmingham, Newcastle, or elsewhere as part of your growth plan, we can help. Our model makes it easy to grow your business.
You pay only for the space you need, when you need it. You gain a support team without hiring them. And you offer your team a workspace designed for wellbeing and productivity, not just utility.
If you are weighing up the costs of a move, it’s worth looking beyond the rent per square foot and considering the total cost of operation.
Whether you are looking to escape a rigid lease or establish your first HQ, we can help. Read our moving office guide for more tips, or explore our locations to see the difference for yourself.