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The Difference Between Serviced and Managed office spaces

The Difference Between Serviced and Managed office spaces

The way companies work has changed in the last few years. The practice of offering flexibility to work from anywhere enhances creativity and is employee-friendly. Common spaces for work have been in trend for a few years. The two types of workspaces- serviced and managed are popularly used nowadays. While connections and relationships are built effectively and purposefully in Serviced office spaces, in Managed offices, one can create branding that could be showcased for better growth. On the other hand, work can be done effectively in serviced office spaces.  

What is Serviced Office Space?

Serviced office spaces are fully furnished, well equipped with all the facilities, and ready to use on required terms. The office space for rent would be available as a single office or the entire floor. It is run by an operator and will be rented to you on flexible terms. These types of office spaces are found to be more flexible and easy to shift according to needs. The company or the client who takes the space for rent would be responsible for the space with the formal agreement/contract. 

It is suitable for start-up companies, who are not interested to pay long leases and shift the offices according to requirements. The facilities such as conference rooms, office furniture, reception area, maintenance and cleaning services are readily available in these types of services. The serviced office spaces give your company the flexibility to grow because the contracts can be canceled at any time.   

What are Managed Office Spaces?

Managed office spaces provide all the facilities by a third party including office space, design, and furniture. In other words, a third party would be doing a complete project for your company. That is choosing the space, requirement according to the company, facilities, etc. So the company can carry on their business work hassle-free. The space and the design would be according to your interest. The contract would be for one to two or three years. Renovation and changes according to the company needs could be done in managed spaces that may not be available in serviced spaces.  

What differentiates Serviced Vs Managed office space?

The characteristics which differentiate between Serviced and Managed office spaces are:

  • Space 

Managed office space belongs entirely to the tenant company whereas, in Serviced spaces, a company occupies space according to its needs. This may create problems in the future once you want to increase the facilities.  

  • Facilities

Serviced spaces are available with readily available facilities like reception staff, common spaces, single spaces, or the entire floor. In a managed space, the tenant company can make changes according to its needs. 

  • Security

In serviced spaces, many companies or offices share the space and amenities. This may lead to a lack of security in terms of data and belongings. Whereas managed office space provides security of things related to the company and employees as the whole floor or buildings belonging to the company.  

  • Identity

Managed office space, you are free to create and an identity for your company. The branding assets like logo, company name, vision and mission, and goals could be displayed in the building. This, in turn, attracts more clients and employees to your company. It could be beneficial for your business. Serviced office space would not be helpful in creating an identity for the company. Since you are sharing the space with other companies, there’s little room for branding.     

  • Flexibility

Serviced office space is more flexible in terms of rents, contracts, ease of moving, more suitable for start-ups, cost-effective, and ease of relocation with minimum expenses. Whereas managed office spaces are beneficial in terms of branding, data security, empowerment, and having a more organized workflow.  

  • Employee Management

When it comes to increased and organized employee management, always managed office space would be the preference. Department-wise organized employees are known to create a better workflow. In serviced space, team members are often seated away from each other and so there are barriers in communication and collaboration. 

  • Cost-effective

Both the services are cost-effective with their services and facilities. Serviced spaces have some limiting facilities like security and employee empowerment. But it is more convenient for startups and companies with fewer employees. Managed service spaces are effective with high budgeting companies that want to showcase their brand and ensure data security.   

Key Benefits of Serviced and Managed office spaces

Benefits of Serviced office spaces

  • Cost-effective and low budget 
  • Easy to acquire the space and start the work within a week
  • Opportunity for networking which is helpful in business 
  • Easy to cancel the contracts within a short notice period
  • Best suitable for start-ups and companies with fewer employees
  • No involvement of any third party. Hassle-free deal with the service provider
  • Choose space according to one’s needs
  • Available with services such as telecom, broadband, maintenance, shared kitchen, conference rooms, etc. 

Benefits of Managed office spaces

  • Organized employee workflow
  • Company identity with proper branding
  • Flexible budgeting for two or more years
  • Company requirement and facilities as per need
  • Data and employee security
  • Third-party involvement makes work easy.
  • Best suitable for the companies looking to start with complete setup

Disadvantages of Serviced and Managed office spaces 

Disadvantages of serviced office space

  • No data security and privacy
  • Facilities are shared with other company employees
  • One might need to change the space if the number of employees increases
  • Little or no opportunity to display branding assets like a company logo
  • Shared broadband and telecom services may result in waiting for one’s turn


Those looking for cheap and cost-effective with less manpower can opt for serviced office spaces. The flexibility with the spaces, facilities, and ready-to-move can be taken into account with respect to service spaces. Though managed service spaces are a bit costly but could generate a better workflow among employees. It could be helpful to create your brand identity and data security. People looking with a high budget or want to build a reputation in the market can opt for managed office space.

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