5 Benefits of Managed Offices for Larger Businesses
25 November 2019
First came serviced offices, then co-working followed suit. Now we’re witnessing the emergence of the managed office – the latest iteration of the flexible workspace model.
Managed offices are sometimes referred to as a “bespoke” or “customisable” office solutions.
So what is a managed office exactly?
A managed office is a workspace solution for medium to large businesses. It’s designed for CEOs who want to benefit from the kind of flexible licence agreement associated with serviced offices but need a self-contained space that fits with their brand identity.
Before managed offices came along, the only real option for larger businesses was to lease an office. The average commercial lease lasts for around 3-5 years and is more restrictive, whereas a managed licence agreement usually lasts for up to two years and is flexible.
Licence agreements don’t give the occupier the same level of long-term security as a lease. However, a growing number of businesses don’t want to be tied into a potentially lengthy lease – especially in a climate of political and economic uncertainty.
Let’s take a closer look at some of the benefits of a managed office:
1 – No upfront costs or fees
Deposits on leased offices can be huge – sometimes up to a year’s rent in advance. A managed office operator, on the other hand, may ask for just one or two months worth of rent.
The upfront costs of fitting and furnishing a leased office can be very high, not to mention time-consuming due to having to find the right fit out company for the job. With a managed solution, the cost tends to be spread out over the length of your tenancy agreement.
Conventional office leases also come with solicitor fees, agent fees and stamp duty. Because a managed office is run directly by the operator, these fees don’t apply.
2 – Speed to market
A managed office operator not only manages the actual workspace itself (taking care of its ongoing maintenance, etc), but also project manages the setup process too. This means it’ll be ready faster than a conventional space which can take months.
3 – Licence agreements
Simply put, a licence agreement is a contract that allows you to occupy a space for a set amount of time and there’s more room for negotiation.
This is beneficial for companies who, for instance, want to rent an office in London for a year because they’ll be relocating to New York after that, or for a business that plans to expand in a couple of years time so doesn’t want to commit to a long-term lease.
Giving notice isn’t as complex as it is with a lease either. And because the occupiers pay a monthly fee that’s all-inclusive, it’s easier to keep track of cash flow.
4 – Fit-out and furniture
Unfortunately, occupiers don’t have full autonomy over the overall design of a managed office in the sense that they can’t make significant changes. However, most managed office operators will style the space according to their client’s requirements.
A managed office is a tailor-made solution, with the business having the final say over the general aesthetic and furnishings before moving in. The occupier is also able to add their own branding – something that’s not always possible in a serviced office space.
5 – Flexibility to change
Modern businesses are drawn to the flexibility of managed licence agreements.
As well as enabling swifter entry and exit, flexible workspaces can allow for fluctuation within. For instance, depending on the operator and the availability within the building, occupiers can take on more (or less) desk space as their requirements change.
With so many different styles and types of office out there today, it’s important to take the time to find the best one for you. A managed office might be a perfect fit for your business if you have, say, 50 to 200 employees, but if you’re smaller, a serviced office may be better.
Either way, we’re here to help.
Get in touch to discuss the different options available to you – including managed offices, serviced offices and coworking memberships. Our advice is free and impartial!
* indicates required Email Address * What would you us to send you?
- General Industry News
- Office Offers
- Workspace Advise & Tips
Please select all the ways you would like to hear from First Office Hub: Email
You can unsubscribe at any time by clicking the link in the footer of our emails. For information about our privacy practices, please visit our website.
Back to all posts