Serviced vs managed offices: what's the difference?

Flexible workspace is now a permanent fixture, and serviced offices and co-working spaces have made shorter, simpler office arrangements the norm. Managed offices are the natural next step: the same flexibility, in a private space that is genuinely your own.

There is real overlap between serviced and managed, and some important differences. Here is how to tell them apart.

What they share

Run for you. In both, facilities and services are looked after by an external team so you can focus on your business: cleaning, coffee, fruit and the rest, all included.

One simple bill. Rent, business rates, service charge, utilities, cleaning, maintenance, in a single monthly payment in either setup.

Tech-enabled. Both models lean on technology to run smoothly. With Kitt, the app keeps you connected to the team, lets you raise anything that needs fixing, and runs the day-to-day of your space from your phone.

Where they differ

Privacy. A managed office is yours alone: your own self-contained floor, private facilities, your name at the entrance, no one overhearing a client call. A serviced office means sharing communal areas with other companies. Less privacy, but more incidental contact with other businesses if that is something you value.

Design. This is the big one: pre-set against bespoke. In a managed office you work with a design team to create the space before you move in, from furnishings to layout to fit-out, all yours. In a serviced office you fit into an existing layout, because it needs to be quickly re-lettable when you leave. Faster to move into, but it will not carry your stamp.

Location. A managed office can be sourced in almost any building, because it is a contract between you and the building’s owner, which opens up hundreds of options. A serviced office is limited to the operator’s existing locations, which can mean competition for the best space.

Clients. A managed office gives you your own reception and meeting rooms, designed to make the right impression. A serviced office offers less control over how the space presents, though a shared, open environment can bring useful networking.

Who it suits. Managed space tends to fit SMEs building a culture of their own, plus agencies, creative companies and larger firms after a regional or project HQ. Serviced offices suit early-stage teams who want company around them, or anyone whose headcount is moving fast and unpredictably.

Term length. A managed office is your own space with your own fit-out, so you typically commit to around two to three years, still far more flexible than a five or ten-year conventional lease. Serviced terms run shorter, sometimes down to a day pass, usually under a year.

So which is right?

There are pros and cons to both. It comes down to the stage you are at and what you want from the space. A lot of the companies we work with started out in a serviced office and reached the point of wanting somewhere more grown-up, and more their own.

If that sounds like you, we would love to talk it through.