What is a Managed Office?

Are you considering renting a managed office for your business but don't know if it's the right choice for you? Find out everything you need to know about managed offices and make an informed decision.

Our guide to managed offices will cover the following topics:

  • Managed offices explained
  • The difference between managed and serviced offices
  • The advantages of a managed office spaces
  • The disadvantages of a managed office space

Managed Offices Explained

A managed office is an empty workspace that can be rented out to businesses and customised by the tenant to suit their business needs. A managed office is run by a third-party provider who organises the space according to the tenant's specifications.

The tenant can choose everything from desks and storage solutions to office branding and all the finer details, all of which will all be taken care of prior to their move-in date. This enables the business to establish themselves in the space from day-one and create a comfortable and welcoming environment for both employees and clients.

What is included in a managed office space?

  • Essential furniture
  • Essential electrical cables
  • Utility bills
  • Office customisations
  • On-site security/ CCTV
  • Waste disposal
  • Communal area cleaning services

The Difference Between Managed and Serviced Offices

A managed office is a term that is often used interchangeably with serviced office, however there are some slight differences between the two. It's best to think of a managed office as a hybrid between a serviced office and a traditional office, offering greater flexibility than a conventional office yet not providing the same 'space-as-a-service' solution as a serviced office.

Another key difference is that unlike a serviced office where it's common to pay per desk, with a managed office the tenant usually pays for the space that their business occupies. Let's explain in more detail...

Offices Amenities

As the name suggests, a managed office space is taken care of by a third-party provider which means that the cost of office furniture, additional fittings, maintenance and utilities are all included in the monthly or quarterly rent price. So, although the business is renting the space, they have complete control over the look and feel of it.

A serviced office is also unbranded with all fittings and furnishings as standard but tenants have little or no input on the overall style and finish. Serviced offices include a wide range of communal building amenities, such as kitchens, coffee machines, WiFi connection, concierge services and technical support. By contrast, managed offices typically include basic amenities, such as desks and storage, but extra facilities and finishes are usually limited to allow tenants to choose.

Lease Agreements

Generally, a serviced office offers more flexible lease agreements than a managed office, allowing businesses to adapt their lease agreement on an ongoing basis to cater for their needs and accommodate business growth. In some instances, a serviced office lease can be as short as one month.

A managed office lease agreement is usually longer since the space has been tailored to the tenant's unique requirements. The typical lease length for a managed office is around 18 months or more, which is still much shorter than a traditional office lease. In this way, both types of offices help eliminate the risk of companies being tied down to long lease agreements which no longer suit their businesses.

Move-in Time

Since all aspects of a managed office are personalised, it may take slightly longer to move into the new space in comparison to a serviced office.

Ultimately, choosing between the two will depend on your individual business requirements and the level of autonomy you would like to have over how the space looks and functions.

Managed Office Serviced Office
  • Custom workspaces
  • Includes reception and IT support
  • Includes basic amenities
  • Includes all amenities
  • Basic furniture included
  • Includes WiFi and IT infrastructure
  • Essential cables included
  • Fully-furnished workspaces
  • Longer move-in times due to office customisations
  • Some workspace personalisation possible
  • Lease agreements starting at 18 months +
  • Flexible lease agreements
  • Swift move-in process
  • Lease agreements 1 month +

Please note that managed office amenities and lease agreements will vary depending on your office provider.

Advantages of a Managed Office Spaces

There are a number of reasons why many companies choose a managed office space for their business, such as reduced overheads and made-to-measure workspaces. Here are just a few more of the many advantages of renting a managed office:

  • Flexible lease agreements: Traditional offices usually come with lengthy lease agreements which require a long-term commitment with little room for negotiation. A managed office contract lasts between 1-3 years on average which is ideal for start-ups that are likely to experience rapid growth, allowing them to plan ahead and avoid getting caught up in rigid lease agreements without scope to expand.
  • Cost effectiveness: A managed office will have a fixed monthly rental fee which means there are no surprise costs. The benefit of this is that it makes it easier for a company to budget and invest back into their business.
  • Brand image: A managed office provides a blank canvas where a business can make its mark and inject personality into their space. Whether it's lighting, chairs, desks or branded decor, the tenant is in control of how their office looks so they create a working environment that works for them.
  • Private workspace: When a business chooses a managed office, they benefit from a private workspace that they don't have to share with other businesses, meaning their employees can make themselves at home and focus on their work with no external distractions. Increased privacy is an additional benefit and a must-have for businesses that deal with confidential or sensitive information.

Disadvantages of a Managed Office Space

When renting a managed office, tenants will need to invest time in organising their space and deciding on the details that will make their space perfect for their business. Although this is all set-up by the office provider, they'll need to think about everything they need for their business to function comfortably and efficiently. The process can be time-consuming but the payoff is worth it.

A Solution to Suit Your Needs

A managed office offers an excellent solution for all types of businesses looking to create a customised space. Managed offices are particularly useful for small businesses or start-ups as it allows them to pick and choose which amenities and services they would like, and save money on any luxuries that may not be necessary at that time. A managed office is 100% tailored to the business, creating the optimum work environment for happy and productive employees.

Serviced offices are also great for start-ups as their flexible lease agreements allow businesses to scale up or down depending on their stage of growth. In fact, serviced offices offer businesses of all sizes an all-inclusive office solution that can help them unlock their full potential.

The 'right' office space will look different for every business. At Orega, we are here to help. For more information, get in touch with our expert team or browse our office locations and find the perfect office space to be you.

Managed Office FAQs

What is a managed office?

A managed office is a type of rental office that offers businesses the opportunity to customise the space and make it their own. A managed office includes all basic furniture and electrical cables but offers the freedom to choose colour schemes, lighting, WiFi provider, cleaning services and much more.

What are the characteristics of a managed office?

A managed office is characterised by the flexibility it offers tenants, providing an empty space that can be customised to suit the needs of their business. A managed office is run by a third-party office provider and offers more flexible lease agreements in comparison to a traditional office. Renting a managed office provides a secure, tailored space with no hidden costs.

How does setting up a managed office work?

When you choose a managed office, your third-party office provider will liaise directly with the building landlord to organise the process and furnish the space to meet your requirements. All you need to do is provide a detailed specification, covering all relevant office amenities and budgets, which will then be brought to life. Depending on the scope of your customisations, the move-in process can take up to 8 weeks.


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Laura Walker

Sales and Marketing Director Board, Sales, Marketing
Laura joined Orega in 2019 as the Sales and Marketing Director. She is responsible for driving sales, growth and overseeing Orega’s marketing and communication strategies. Previously, Laura was Retention Director – Support Services for Compass Group UK & Ireland, responsible for retaining and growing the client base. Prior roles include sales, marketing, client and facilities management. Laura has two young children and enjoys spending her free time with family and friends.
Read more about Laura Walker

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