Serviced, Managed, or Traditional: Which Type of Office Space Should I Rent?

Moving offices can be one of the most disruptive things to happen to a business. But a well considered and well executed office move should be a smooth and positive experience.

At Knight Frank we’re here to help make things as simple as possible. In this blog we explain the three main types of office space; traditional office space, serviced office space, and managed office space and why one may suit your business better than another. 

Serviced and Managed office space fall under the umbrella term of flexible office space – this is because they are delivered as ‘plug and play options’ i.e. you simply turn up with laptops in hand and the office is both furnished and fully operational so you can start work immediately. These types of space are offered on more flexible shorter term commitments. 

What is a traditional office?

Traditional office space is so-called as it used to be the only way you could take office space - on a long term commitment, where the landlord provides you with a ‘white box’ and you are responsible for fitting out the space, furnishing it, and operating it on a day-to-day basis.

What is included in a traditional office? 

The short answer is not much! Here your landlord is responsible for looking after the building as a whole, and the various common areas that are shared by all the tenants. But in terms of the space that’s dedicated for your use, that’s your responsibility. As mentioned above, most traditional office spaces are offered as a ‘blank canvas’, where you’ll be responsible for the design and build out of the internal office spaces, furnishing and dressing those, and procuring the various soft services you require to make your office function in the way you need it to. 

The key advantages of this type of office space are that you'll have complete control to create something that’s bespoke to your individual business requirements. But, a notable downside is that you’ll need to employ a number of consultants to help you navigate this process and you’ll need plenty of upfront capital to pay for it. 

The longer-term contracts also leave you with little wiggle room if your circumstances change.

Is my business suited? 

A traditional office space is great for businesses that are confident in their long-term space requirements, can afford large amounts of upfront capital outlay, and want complete control over the process of building out and managing their own space.

If you're a fast-growing startup with an expanding headcount, a traditional office space may not be for you, especially if you want collaborative atmospheres and don’t want the hassle of fitting out and managing your space yourself.

What is a serviced office? 

A serviced office space may also be referred to as a coworking space, but it’s a lot more than that. From private offices to studios and fixed desks, no two spaces are alike, so you'll be sure to find something that works for your business.

What is included in serviced offices? 

Having a serviced office space can take away the burden of setting up and running an office – the spaces are fully fitted and furnished, with a suite of services included - from day to day maintenance to cleaning. They often come with additional benefits which range from free fruit to comprehensive events calendars. 

The average term length is 12-18 months, but some spaces (typically smaller ones) are sometimes available  on a monthly rolling contract. 

Is my business suited?

A serviced office space is great for new businesses and scale-ups who don’t know what their headcount is going to be in a year (or even a few months). 

But serviced offices are not just for early stage businesses. The flexibility of serviced offices mean they can provide a great stop-gap solution for larger corporates spinning up project teams,  or who need flexible, overflow space.

The ‘plug and play’ nature of serviced offices means they’re quick to find and easy to move into, and you won't have to pay much when it comes to upfront fees. However, they may not be ideal for businesses wanting to craft their own space or have exclusive use of meeting rooms, for example.

Our top serviced office picks

58 Grosvenor Street

If you're looking for a high-end serviced office that comes with all the benefits you'd expect, while still having a sense of privacy, 58 Grosvenor Street might be for you. Complete with an atrium-style lounge and impeccable glass ceilings, this building has everything you could possibly need. For businesses that want to exude confidence and prestige, this serviced office would be a great fit, while the office layout and size can be adjusted to accommodate your needs. 

27 Bush Lane

If you'd prefer an open-plan office with different office types to suit different needs, 27 Bush Lane should definitely be on your list. With plenty of style and amenities to go around, 27 Bush Lane is actually a private business members’ club, so there should be plenty of opportunities for networking and impromptu meetings.

Borough Yards, South Bank

If culture and the appeal of city life is a big factor, Borough Yards is a really unique serviced office. It's within walking distance of the Tate Modern and The Shard, while it also comes with a range of workspaces, including private offices, coworking, and meeting rooms. This serviced office was clearly designed with wellbeing in mind – it's home to outdoor terraces, an audio room, and even a Peloton studio!

What is a managed office? 

Managed office space is a blend of a traditional office space and a serviced office space. It has all the service benefits of flexible working and collaboration, while still giving you some control.

What is included in a managed office? 

With a managed office space, you'll hand over control to a third-party provider, who will deliver as per your wishes. You’ll have some say over design, furniture, and branding, such as sleek signage in the lobby to welcome your guests.

Businesses usually stay in a managed office space for one to five years, and because it can be fully tailored to your needs, you’ll likely want to stay for longer and simply expand if you need more space to grow.

Is my business suited? 

Managed offices are great for established businesses who need some flexibility in term length and want to make their office feel like home, but don’t have the time, expertise, or desire to take on the admin or hassle of handling a fully functional office.

While a managed office space can be a great choice for many businesses, it may not be ideal for smaller or growing businesses that highly value being part of a community, or are wanting to collaborate with other similar-stage businesses.

Our top managed office picks

10 Cork Street

Located in Mayfair, 10 Cork Street is a boutique office space in a statement building, coming with everything you could need so you can move in right away. From fast WiFi and IT support to bike storage and shower facilities, this managed office has everything you could need to succeed as a business, and is one that we're sure you and your team will love. 

16 Dufour's Place

Having been extensively refurbished recently, 16 Dufour's Place is home to fully managed workspaces that are good to go, so you can move in as soon as the ink has dried. While you can take just one office alongside other businesses, there are several floors that have been taken in their entirety, so the choice is yours.

20 Appold Street

If flexibility is a big factor for you and your business, 20 Appold Street is a great choice, complete with boardroom and lounge facilities, a spacious roof terrace with large dining tables, and even a covered meeting pod. Located in Broadgate, which is home to a diverse community of innovation and finance enthusiasts, you'll also enjoy easy access to public transport, thanks to its proximity to Liverpool Street station.

Get Started With Knight Frank

Regardless of whether you're looking for a traditional, serviced, or managed office space to rent, Knight Frank is here to help make the process as simple as possible. We know that there's no such thing as a one-size-fits-all solution for every business, which is why we'll consider your unique needs to find somewhere that just works for you and your team – it's that simple. 

To discuss your options and get things moving in the right direction, get in touch with a member of the Knight Frank team today.