Anyone who has tried to find commercial office space will know the process is both difficult and time-consuming. You spend months viewing facilities, and when you do eventually find a suitable space, leases have to be negotiated and complex contracts signed.
Surely there is an easier, more efficient way of finding office space? Well, that’s where managed office space comes in. A managed office provider provides office space for a single fixed monthly fee. No break clauses or security deposits, no renewal fees or early termination penalties. Just the office space you need when you need it.
For most companies that would be reason enough to consider managed office space to help support their growth. But there are many other advantages to this type of accommodation. So many, in fact, that the managed office market is set to transform the way office space is acquired and leased over the next few years.
Let’s take a look at several benefits managed office space provides…
Flexible space that scales with you
Businesses grow and innovate, that’s what they do. A business that needs 500 sq ft today will likely need 1000 sq ft tomorrow. Up until now, however, the commercial office market has failed to address this fact.
A traditional lease contract locks companies into long leases, deploys expensive break clauses and insists buildings are restored to their original condition upon termination. This forces fast-growing companies to split operations across multiple sites which is both expensive and inefficient.
By using managed office space companies can benefit from flexible space which scales with them as their business grows.
How managed office space supports business growth
To highlight how these benefits can help support your business, let’s look at an example using a fictional motion graphics company.
The company starts small with just the two founders as employees. At this stage, they do not require dedicated office space but they do need a place to meet new clients. So it makes sense for them to rent coworking space in a managed office where they also have access to meeting rooms.
Fast forward a couple of months and they have won a contract to provide motion graphics for a new TV series. To complete the work they need to take on two extra staff. To accommodate them, they have leased a small dedicated office for six people from the managed office provider.
This space was supplied on a flexible basis and delivered at short notice. What’s more, there were no tiresome lease negotiations, no expensive break clauses and all building maintenance fees and utilities are included in the price. And because the office was supplied fully furnished, there are no office fit-out costs either.
Fast forward another 12 months and the company has continued to grow. Their excellent reputation has generated further opportunities. But they have also generated work by collaborating with other companies in the office space they share. As a result, they now employ 8 people and have moved to a larger office to accommodate them.
The company can keep growing this way, without incurring expensive fit-out and relocation costs, right up to 100+ people if necessary. So you can see how making use of flexible managed office accommodation from the start can help support your business as it grows.
Look at how the company used these benefits to facilitate growth:
They started small with no capital outlay
They were able to obtain new office space at short notice
No office fit-out costs were incurred
They do not have to pay for space they’re not using
They benefited by collaborating with like-minded companies in the same facility
They can continue to grow without any major CapEx costs
Customer-centric service and transparent communication
Companies today need to focus on delivering excellent customer service if they are to succeed. Unfortunately, this concept has yet to translate to the rather staid world of traditional real estate management. As a result, tenants often find themselves at war with the landlord over things like maintenance and the upkeep of communal areas.
Managed office space provides a more professional customer-centric solution. Most facilities employ dedicated onsite representatives to provide business support. Larger facilities have also developed detailed Service Level Agreements (SLAs) so you always know what to expect and when it will be delivered.
All companies seek good value in the transactions they make. But the value of an opportunity is not always obvious. This is often the case with managed office space. If you look at it from a cost per sq ft basis, leasing managed office space is more expensive than leasing it directly. But this overlooks the many hidden costs of office relocation.
Once you take into account the cost of renovations, fit-outs, legal and agent fees, moving fees and reinstatement costs, it is often more expensive to lease directly with a landlord than to rent space from a managed office provider. And that is without the many other benefits managed office space provides.
Utilising managed office space also allows you to budget more accurately. Many upfront costs are reduced and unknowns such as dilapidations are eliminated. This allows you to allocate more funds to R&D and technology upgrades which will ultimately drive further business growth.
Look at the value managed office space generates compared to leasing direct:
No long-term contracts
No legal or agent fees
No reinstatement costs
No upfront fit-out costs
No relocation costs
Time is the most precious commodity in the world, so you’d do well to not waste it. If you’ve ever had to endure the pain of finding office space the traditional way, you’ll know how time-consuming it is. Property viewings, credit checks, contract negotiations, interior design, fit-out and more all take time.
Wouldn’t it be easier to have a single point of delivery for all these items? That’s what managed office providers do. They take your initial ideas to create a customised solution that meets your needs and budget. All you have to do then is move in. It’s estimated that relocating into a managed office space takes a third of the time compared to the traditional method.
There is more to the modern office than desks and a funky breakout area. If you are to work efficiently you will also need access to cutting edge technology. However, solutions such as multi-line VoIP and secure WiFi are difficult to deploy and manage on a small scale. But when you move into a managed office space, these services are provided for you.
Most managed office spaces deploy standard technology stacks which provide resilient network services, secure WiFi, and VoIP communications. But these can often be supplemented by your technology. So if you have specific network security needs due to Fintech regulations, no problem; the technology you need can be deployed alongside existing solutions.
Building services such as security, cleaning and maintenance are one area of building management nobody wants to deal with. But without them, your business wouldn’t run quite so smoothly. By handing these essential services to the managed office provider, you will have more time to spend on more productive things.
Many managed offices facilities also provide additional support services such as call forwarding, mail handling, manned reception areas, meeting room booking and IT support. So in effect, they provide all the support and infrastructure your company needs to thrive in an ultra-competitive business landscape.
Looking at the benefits managed office spaces provide, it’s no wonder the serviced office market has grown 31% since 2008. And this period of rapid growth was just the beginning, with estimates showing that the UK managed office market could be worth as much as £126 billion by 2025.
With hundreds of managed office facilities springing up across the UK, the days of dealing with real estate agents, negotiating complex leases and renting space you don’t need to facilitate growth are coming to an end. So if you’re looking for space to grow your business, check out the diverse range of space available near you here.
Help & Advice:0800 611 8150
Free Office Search
- Tell us where, what and when
- We will provide a list of offices for you
- Free Help & Advice on 0800 611 8150
We promise only to contact you about your office search