SERVICED OFFICES VS MANAGED OFFICES: WHAT ARE THE DIFFERENCES?

Hong Kong's office rental market is one of the most competitive in the world, hence the choice of office space is vital to thrive in this city. Carefully taking flexibility, adaptability and cost-effectiveness into consideration, businesses should select office workspaces that support their operational needs and development plans. Luckily, there are various types of office spaces to choose from, including serviced offices and managed offices. Don't let the names fool you – even though both options are managed by third parties and provide services, they, in fact, cater to different requirements.
 

What Is The Difference Between A Managed Office And A Serviced Office? 

A managed office is a workspace leased as a whole to one business, managed by a third-party operator. Just like blank canvases, these spaces allow you to tailor to your preferences, from lighting and furniture to branded décor. The operator provides planning, design and execution services to help you set up the place before moving-in, perfect for businesses looking for a custom-designed and branded office without the hassle of traditional office setup.

A serviced office is a ready-to-use workspace that can be rented on flexible terms. Managed by the provider, these private offices come fully equipped with everything needed to start working immediately, including desks, Wi-Fi and phone lines. Typically, you rent a dedicated office room while sharing amenities like communal lounges and pantries with other businesses. Their flexible lease terms usually start from one month, with monthly rolling option available. The all-inclusive monthly fee covers the space you occupy, utilities, security, shared amenities and building management services, making it easier for you to budget.

Differences between serviced offices and managed offices are primarily in terms of the number of clients, customisation, lease terms and setup time. First, managed offices serve a single business in each space, while serviced offices accommodate multiple businesses in the same location. Thus, managed offices offer businesses more control over design and branding, while serviced offices provide pre-designed, fully equipped private offices. Due to their nature, managed offices usually require longer lease terms and take more time to set up, whereas serviced offices are ready for immediate use with flexible, shorter lease terms.
 

Serviced Offices Or Managed Offices : What's The Best For You?

Serviced offices and managed offices serve different business needs. To help you identify which option fits you the best, we have compared their main features in the following table.
 

Targeted Customers

Serviced offices target businesses that require a dedicated, fully furnished place to work without sacrificing flexibility. Their target audiences include startups, freelancers, SMEs and large corporations seeking both long-term and short-term project spaces or satellite offices.

In contrast, managed offices cater to larger corporations that can afford a fully customised workspace tailored to specific needs, including location, design and layout. This solution best fits businesses seeking a more permanent, branded office environment.
 

Services Included

Serviced offices come with all-inclusive amenities such as ergonomic furniture, internet connection, access to business lounges, pantries and other common spaces, as well as access to services like administrative and IT support; thus, it is easy to get started immediately.

Managed offices, on the other hand, offer comprehensive bespoke services that include strategic planning for office location, incorporating branding elements into the design, optimising team placement, overseeing the execution of the setup process and providing ongoing operational support throughout the lease term.
 

Lease Terms

One of the biggest selling points of serviced offices is their flexible lease terms, usually starting from just one month with the option for rolling renewals. It is a perfect solution to adapt to the dynamic business environment.

On the contrary, managed offices often require longer-term commitments of a minimum of 18 months, due to the extensive planning and setup work needed to customise the space before move-in.

 

Customisation

In terms of customisation, serviced offices are fully furnished and ready to use, and only limited customisation is allowed – you can bring in your own furniture and put up your company logo, but major changes, such as knocking a wall down, aren't typically allowed.

In comparison, managed offices are fully customisable. You can tailor the entire space to your preferences, just like a blank canvas. From design, layout and furniture to security systems and telecommunication infrastructure, the managed office team will help you build a workspace that reflects your brand identity and specific operational requirements.
 

Scalability

Since serviced offices focus on flexibility, they allow companies to scale up or down easily based on their needs. You can move to larger or smaller offices within the same location or to another location within the provider's network. 

Unlike serviced office, managed offices are not as easy to scale due to their fully customised nature. These offices are often larger in scale, hence scaling involves a higher cost, and a longer process of potential renegotiation and considerable planning.
 

Management

Both serviced and managed offices are run by third-party operators who handle the main lease, daily operations and maintenance. On a day-to-day basis, they handle tasks like cleaning, fixing broken light bulbs, managing security, restocking office supplies and handling IT issues.

Some serviced office providers go beyond in engaging their members, which is less common for managed offices. They organise networking events, cocktail parties and workshops to promote a sense of community among members. Alternatively, since managed offices are dedicated to a single client, they focus more on providing a tailored, branded space rather than creating a collaborative ecosystem.
 

Easy of Setup

Serviced offices are fully furnished and equipped with all essential amenities, thus making it very easy for businesses to move in immediately. It's a simple 'plug and play' solution – you can walk in, connect your devices and start working right away.

On the flip side, managed offices require more planning and preparation, making it less straightforward to get up and running compared to serviced offices. While they offer greater customisation in designing and installing the space, this comes at the cost of setup time.
 

How To Get Started? 

Since 2009, Compass Offices has provided top-notch flexible workspace solutions across APAC, with 10 business centres in Hong Kong's key business districts in Central, Sheung Wan, Admiralty, Causeway Bay, Tsim Sha Tsui and North Point . From serviced offices that start from just one month, to enterprise solutions, a managed office solution for larger corporations, our diverse offerings caters to businesses of all sizes.  

Our contemporary, neutral designs fit various brands and promote professionalism, offering a great alternative to managed offices. You'll also enjoy access to essential amenities and support from a multilingual, professional team - all essential for modern businesses. Contact the Compass Offices team today to schedule a tour and receive a customised quote tailored to your needs.