Serviced office Vs Managed office Vs Co-working: What suits your business the best?

May 3, 2021

Your choice of a workplace plays an important role in employee productivity and the overall growth of the business. With a vast variety of workspace models available currently, it can be difficult to analyse and make the right decision for your enterprise.

To help you settle for the best option for your business, we’re going to take you through the pros and cons of three popular models of unconventional offices: Managed office, Serviced office and Co-working space.

Serviced office Vs Managed office

In a serviced office model, a workspace can be rented on a flexible, short term basis and includes inbuilt facilities like clerical support, reception staff etc. The office space is fitted out and designed according to the specifications of the provider. A tenant pays an all-in cost per desk each month and the lease typically lasts for a term of 1-12 months.

A managed office is a 360 degree outsourced workspace solution with state-of-the-art amenities, premium locations, Grade A property features and modern infrastructure. The key difference in managed offices is that the workspace is customized according to the specific needs of the enterprise to reflect their ethos and pathos. A tenant is normally required to commit for a term of 1-3 years.

What are Co-working spaces?

Vastly different from serviced and managed offices, Co-working spaces offer on-demand services for tenants with complete flexibility to scale up and down seating requirements without the liability of capital investment or worrying about maintaining one’s own office space.

The benefits and disadvantages of a serviced office space

The contract length can range from one month up to 3 years, making this office model suitable for enterprises that value flexibility and are looking to minimise upfront costs like furniture.


  • Already Fitted out:  Serviced offices provide ready-to-go office solutions where you can simply turn up and start working.
  • Flexibility: Choosing a large leased space is a long term commitment as you are typically bound by a contract of more than 3 years. However, serviced offices offer a greater degree of flexibility by keeping shorter contracts.
  • Premium Location: Serviced offices are located in premium locations which help enterprises establish their presence and enjoy good connectivity.
  • Save Upfront costs: Serviced solutions relieve tenants of the significant upfront capital expenditures.
  • Impressive facilities: Serviced offices are equipped with basic amenities, high speed Wifi and office management facilities in order to create an engaging and positive work environment.


  • Lack of personalisation: A serviced space has very few opportunities for personalisation and will fail to reflect their company culture though their workspace.
  • Unanticipated extra costs: Serviced offices are expensive in the long run as their monthly rent is higher than traditional workspaces. Not only this, charges will add up as you avail other additional services.
  • Shared facilities: Renting a serviced office also means that you’ll have to share facilities like parking, meeting rooms, cafeterias etc.

The benefits and disadvantages of a managed office space

Managed offices offer the flexibility to brand and customize the workplace among other state-of-the-art facilities.


  • Customization: Managed offices help enterprises to inculcate their company culture and values in their office space to create a sense of belongingness among the employees.
  • Cost effectiveness: Managed offices offer a seamless way to scale up and down while cutting down on heavy rentals, long-term leases and saving overhead costs on office administration and maintenance.
  • Premium Location: Managed offices are strategically located in selected business centers and commercial areas which offer the benefit of connectivity, networking and competitive advantage.
  • Amenities: Managed workspaces are equipped with cutting-edge technology, efficient seating arrangements, spacious lounge areas, IT support, administration and maintenance services.
  • Simpler accounting: Managed offices present an all inclusive invoice each month reducing the hassle involving payment.


  • The transition to a managed office space can be slow and time-consuming since it requires more time to customize the office according to the tenants.

The benefits and disadvantages of a co-working space

Co-working spaces are popular for enhanced flexibility, connectivity and networking.


  • Cost-effective: Co-working spaces are affordable and cost-effective in comparison with serviced and managed offices while providing a variety of basic office facilities like meeting rooms, cafeterias, high-speed Wifi etc.
  • Networking: Co-working spaces offer ample opportunities to be social and network with the other tenants availing the services of the office model.
  • Quick transition: It offers flexible leases and you can immediately switch to a co-working space.


  • No privacy: Working in a shared office space generally means that you will be working along with people outside of your organization. That means you can’t talk about confidential data or meet clients who request non-disclosure agreements for their projects.  
  • Considerable restrictions: Co-working spaces don’t offer any scope of customization to their tenants. Apart from this, you may also encounter other restrictions and distractions at the workplace.
  • Limited space: Along with restrictions on how your workspace looks, you may encounter limitations on how space is being used as well. You’ll also be required to share facilities like meeting rooms, cafeterias etc.


By considering your needs in terms of flexibility, office design, lease terms, affordability and culture, you can better compare these innovative office models and switch to the one best suited for your business and workforce.

Managed offices provide the necessary tools to growth driven enterprises to focus on their core business activities without worrying about office management, rigid lease structures and capital expenditures and are best suited for more established businesses, from small-mid to large size organizations, looking for workspaces that can be fully customized and branded as per the requirement Whereas serviced offices and co-working spaces are best suited for small enterprises, start-ups and freelance professionals.

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