MANAGED OFFICES GUIDE
Whether you already know what a managed office is, or are on the market for a new workspace and want to find out if it is the right choice for you, we’ll tell you everything you need to know about managed offices, so you can make an informed decision.
WHAT IS A MANAGED OFFICE?
While sometimes confused with being the same as a serviced office, there is a distinct difference between the two. Managed offices are spaces that are purpose built as an office space and give the prospective occupants the opportunity to have much more control over the environment they work in. It is essentially an empty office that can be tailored to suit the exact needs of the occupant.
You will also find that most managed offices come with basic cabling and some pieces of furniture, so there is some form of structure for commercial residents to work with. Office cleaning services may sometimes be included within the monthly fees, although companies will not have access to features such as meeting rooms and reception rooms that come with leasing a serviced office.
WHY RENT A MANAGED OFFCE?
Businesses of all sizes that choose to pay for a managed office are able to enjoy a wide variety of benefits including:
- Greater flexibility: Most managed office contracts last for at least 1-3 years, although sometimes shorter alternatives are available. This is particularly attractive to start-ups and small businesses who don’t have financial security to commit to a longer agreement. If the company grows or decreases in size, it also offers more flexibility to react quickly and move to larger or smaller premises where appropriate. If you are a larger, more established company, agreements can be negotiated to last even longer, ensuring stability and security.
- Lower risk and cost: The fixed monthly fee will give your business access to any available facilities management, as well as helping your company to leave the premises if you wish to move on at some point. In terms of cost that means you won’t have to pay extra for moving in or out, so you always know where you are financially.
- Easier accounting: As managed offices are tailored to the needs of the company moving in, that means there is less capital required upfront. Whether you pay monthly or quarterly, everything is combined into a single payment. That also makes it easier in accounting terms, as there are no surprise invoices or costs, allowing the business to plan their budget with more confidence.
- Aesthetic control: When you move into a managed office it is largely a blank canvas that you will have to fill in. The advantage here is you can create the exact environment that suits your business. This covers everything from desks and lighting, to the colour scheme and branding on display. It’s your office, so you remain in control of the space your staff are going to be working in.
- Increased privacy: With greater control comes increased privacy. You are not sharing any parts of the building with other companies, so you do not have to deal with untimely interruptions from anyone else. This allows you to focus without distraction and is ideal for companies who work on sensitive material, or when it comes to discussing and planning corporate activity.
WHAT’S INCLUDED IN A MANAGED OFFICE?
Before you make the decision to commit to a managed office contract, you will want to know what comes with it when you move in. This will allow you to budget and understand what needs to be done to become operational.
Although it may vary slightly from one provider to another, you should expect to have the following included in your fees:
- Rent and utility bills (not including telecoms)
- Allocated parking
- Landscaped grounds
- On-site security
- Waste and recycling facilities
- Cleaning of communal areas
WHAT’S THE DIFFERENCE BETWEEN MANAGED AND SERVICE OFFICES?
A managed office gives companies more control over the space they will work in. Whilst there is more work involved in terms of organising furnishing, utilities and business services, once everything is in place, the company has more autonomy over the way they operate. It also means you do not have to share any meeting rooms or utilities with any other company.
In a sense, managed offices are a cross between leasehold offices and serviced offices. For businesses with around 40-50 staff members who need approximately 3,000sqf or more of space, managed offices are the ideal solution.
When it comes to serviced offices, almost everything you need will be in place so you can get to work immediately. From Wi-Fi and furnishings, to phone lines and businesses services, everything is included with the monthly fee.
Any boardrooms or meetings rooms in a serviced office have to be shared amongst the other companies in the building. They are a good solution for SMEs looking for a short term solution, as contracts typically tend to last for 1-2 years at most.
WHAT ARE THE CONTRACT TERMS?
In most cases, contracts last between 1-3 years for managed offices. Although they can often be extended up to 5 years if the company wants a longer term commitment.
WHAT TYPE OF OFFICE SPACE IS MOST SUITABLE FOR MY BUSINESS?
Businesses that are just starting out will be on the lookout for the lowest monthly costs, which means a managed office could be the right option for you. That’s due to the relatively low rental fees and the freedom a managed office allows - you can decide on how money is spent on amenities and extras.
However, if you need a working space that allows you to get straight down to work, then a serviced office is probably more suitable. Taking this option means you also get a reception area, added business services and all the office infrastructure already in place.
Looking for managed office space? At Prime Office Search we have a variety of flexible office spaces available to suit all business sizes and requirements. Browse our office spaces online or call us on 08004337888 and one of our experienced consultants will help you find the ideal office space for your business.