Differences Between Managed Office vs Coworking Office

Managed Office vs Coworking Office Space

Coworking spaces have been more and more popular among startups and expanding businesses. Recently, managed offices have become a new trend in commercial real estate. What exactly is a managed office, then? In a nutshell, it is a customized workplace provided and run by a third party operator. Managed offices are exclusive locations for your company that represent your corporate identity, as opposed to coworking spaces where several businesses operate under one roof.

 Few points by which Managed office and Coworking office spaces differs are:

 1.Design and Construction: Coworking uses an innovative, contemporary, and community-inspired open floor plan with hot/dedicated workstations, meeting spaces, entertainment areas, and other amenities to promote collaboration and make sharing amenities simple. However, managed offices are more divided than shared offices. It is more akin to a private office; based on your preferences & needs, you can select from cubicles, open workstations, or cabins. Additionally, it will have segregated sections like lounges, conference rooms, and other spaces. 

 2.Office Culture and Environment: Coworking spaces often offer a relaxed, informal atmosphere. Shared offices inherently exude an entrepreneurial atmosphere because they are frequently chosen by start-ups, developing businesses, and independent contractors. Managed offices tend to have a corporate or professional atmosphere because they are formal workplaces appropriate for established enterprises. 

 3.Modification:The comparison between managed offices and coworking spaces should also take modification into account. Limited modification options are available in coworking spaces because they are already furnished and equipped with all utilities. Managed offices, on the other hand, are blank or naked rooms that you may personalize in accordance with your preferences and brand identity. 

 4.Flexibility for Development: A managed office provides less flexibility for development as compared to coworking spaces. You can expand or contract your team size when working out of a shared office by adding or removing extra desks from your package. However, throughout the life of the contract, you are not permitted to remove seats under the managed office rules. You might be able to add more seats with some service providers for an additional fee. 

 5.Convenience of Location: The location flexibility of coworking spaces is one of their top benefits. Your workers will find it simpler to work from the office that is closest to their place of residence thanks to neighborhood office providers like The Office Pass (TOP), who provide offices in numerous places. However, managed offices lack the flexibility of location and are location-specific. 

 6.Startup Configuration and Maintenance Expense: Compared to shared spaces, managed offices have greater startup charges and maintenance expenses. You must pay a security deposit when choosing a managed office, which is normally equal to 4 to 6 months' worth of rent. You should also invest between 60% and 80% of the whole furnishing charges toward the price of furnishing. The coworking space is completely equipped by the owner, and the security deposit is reasonably low. 

 7.Independence and Privacy: Managed offices, as opposed to coworking spaces, provide you greater freedom in setting up, decorating, and furnishing the area. You will also have unrestricted access to conference rooms, breakout areas, and other facilities because no other firms will be using the premises. The major drawback for companies using shared offices is privacy. You will be surrounded by individuals and other enterprises who are unrelated to your own. Managed office services are advantageous for firms handling sensitive information or while working on non-disclosure client work since they provide the lessee complete privacy. 

 8.Period of Transition: Coworking spaces are available for you to move in as soon as you've chosen your package, agreed to the terms of the agreement, and made all necessary payments. The transition period, however, is longer for businesses moving into managed offices. The office may not be ready for occupancy for 6–8 weeks after the contract is signed. 

 9.Teamwork Opportunities: One of the primary purposes of shared workplaces is teamwork. Coworking spaces inherently foster informal networking because they host several enterprises, contractors, and entrepreneurs. However, controlled offices' entire design, organization, and structure discourage cooperation. But when you want to focus and work without interruptions, it's perfect.