What are the Differences Between Managed, Serviced and Leased Office Spaces?

In today's business environment, choosing the right London office space for your business is important for your success. This guide will help you understand the differences between serviced, managed and leased office spaces in London, enabling you to make an informed decision on what type of office is best for your business.

What is a serviced office space?

Serviced offices in London are fully equipped, ready-to-use spaces that offer a range of amenities and support services. This type of office space solution is designed to provide businesses with flexibility and convenience with shorter leases and all fees included.

What are the pros of serviced office spaces?

London serviced office spaces are a great option that offer immediate occupancy, allowing you to move in and start working right away. They typically come with flexible lease terms, making it easier and more convenient for your business. Office space providers like Fora and WeWork offer an all-inclusive pricing model that covers rent, utilities, and maintenance, simplifying your budget and reducing unexpected costs.

Tenants have access to shared facilities, dependant on location, include the likes of meeting rooms, breakout spaces, gyms/wellness studios, bike storage, on-site showers, outdoor terraces and more. Professional support services, including receptionists and IT support, are often included, allowing you to focus on your core business activities.

A key advantage is the networking opportunities that come with working in a serviced office space. This fosters a vibrant community, particularly beneficial for small teams seeking a lively office environment. Many coworking providers organise weekly networking events for your team to get involved in.

What are the cons of serviced office spaces?

While convenient, serviced office spaces in London often come at a higher cost per square foot compared to other leases. With a serviced office, you pay a slight premium on rent in exchange for all-inclusive fees, amenities and increased flexibility. The open nature of these spaces can compromise privacy, potentially making them unsuitable for businesses handling sensitive or confidential projects.

Here are a few of some of our favourite serviced office space providers

Fora - Premium serviced offices

WeWork - Coworking and private offices

Runway East - Eco-friendly coworking and private office spaces

Work.Life - Community focused coworking spaces and private offices

Uncommon - Eco-friendly serviced offices

What is a managed office space?

A managed office space offers a dedicated area for your team. Often you will have the whole floor for yourself, with a private kitchen and bathroom facilities. In this type of space, you are able to make the call on your preferences, from the number of desks and chairs required to the type of finishes.

What are the pros of managed office spaces?

Managed offices in London provide more privacy and security, which is crucial for businesses dealing with sensitive information. They offer greater control over office layout and design, allowing you to create your dream space that reflects your company culture. This dedicated office space provides an opportunity to build and reinforce your company culture among employees.

Another perk for managed office space is the simplicity of your monthly bills. Rent is paid as one all-inclusive monthly fee, offering greater control over cash flow and simplifying your budgets.

What are the cons of managed office spaces?

Managed office spaces typically come at a higher cost than traditional leases, especially in sought-after London areas. They offer less flexibility in terms of scaling up or down quickly, which may be a drawback for rapidly growing or changing businesses. Some managed office spaces may have limitations on operating hours, which could be inconvenient for businesses that require 24/7 access.

Compared to serviced offices, renting a managed office space involves a longer waiting period due to the fit-out time. If you're requiring a quick office move turnaround, a managed office space might not be the right option.

What is a leased office space?

Leased office spaces are traditional long-term rentals where you have full control over the space, however, you are responsible for all aspects of office management. This is done on a price per square foot basis. To do this, a large deposit is often required upfront, prior to moving in.

What are the pros of leased office spaces?

Leased offices in London generally offer lower long-term costs, especially for businesses planning to stay in one location for an extended period. They allow for complete customisation of the space, enabling you to design your dream office. From layout and decor to IT infrastructure and amenities, businesses can tailor the environment to reflect their brand identity and optimise workflow.

What are the cons of leased office spaces?

Leased office spaces in London often come with high upfront costs, such as deposits, renovations, and furniture purchases. They typically require a long-term commitment, which may be risky for businesses with uncertain futures in the ever-changing London business scene.

As the tenant, you're responsible for all maintenance, bills, furniture and IT infrastructure, which can be a stressful task. Leased offices also offer less flexibility to scale as your business changes, which can be problematic if you need to quickly expand or downsize.

What do I need to consider when searching for the right office space for my business?

Choosing the right London office space depends on various factors specific to your business. Here are some key considerations:

What are the goals of your business?

When you’re searching for office space, it’s vital to consider your growth projections. Whether you’re expecting rapid expansion or contraction in the near future within the London market, evaluate your budget constraints and determine how much you can realistically allocate to office space in London's competitive real estate landscape.

What aspects of an office space are your team needing?

There are many things to consider for your team. Think about the importance of location, such as accessibility to clients or public transport for your team in London. Consider what amenities are essential, including the likes of gyms/wellness studios, outdoor terraces or whether a space is pet friendly. Evaluate the importance of collaboration spaces and meeting rooms for your team and clients. Employees are a company’s most valuable resource and their needs should be prioritised, therefore your team's wellbeing is important when searching for new office space.

Finding the perfect office space to rent for your business

By carefully evaluating your business goals and team needs, you can determine whether a serviced office, managed office or a traditional leased office is the best fit for your company. Remember, the right choice of London office space can significantly impact your productivity, employee satisfaction, and overall business success.

Here at Found, we’re here to help you with all things related to your office space search. Get in touch with one of our office space brokers today. Alternatively, if you are looking for a quick cost estimation for your office space requirements, check out our Free London office space cost calculator.