Serviced vs Managed vs Leased Offices: Which Is Right?
Choosing a new office isn’t just about location and square footage. It’s also about how you want to occupy the space. Broadly speaking, businesses have three routes to choose from: serviced, managed, or leased. Each comes with its own balance of flexibility and control, and understanding the differences can save you time, money, and a fair few headaches.
Here’s a breakdown of each option to help you work out which is the right fit.
Serviced Offices: Minimal Fuss, Maximum Flexibility
A serviced office is your all-in-one workspace. You get a fully furnished office, high-speed internet, utilities covered, and a friendly receptionist to greet your guests. Bookable meeting rooms, a stocked kitchen, and regular cleaning all come as standard, alongside flexible lease terms and the chance to rub shoulders with other like-minded professionals in the same building.
At a glance:
- Typical size: 5 to 100 desks
- Term length: 3 to 24 months
- Agreement type: Licence agreement
- Deposit: Typically 1 to 2 months’ rent
- What’s included: Rent, business rates, service charge, utilities, cleaning, maintenance, and IT
Move-in speed: Super quick. In many cases you can be up and running within a few days, or even 24 hours, depending on availability.
Exit costs: Minimal to zero. You’ll usually just need to hand the space back in its original condition; some providers may charge for a deep clean.
Best for: Businesses that need the option to scale up or move location quickly, and don’t want to make a big commitment.
Managed Offices: The Best of Both Worlds
A managed office is your customised workspace solution. You get a fully equipped office, complete with furniture, utilities, and high-speed internet, along with cleaning services and access to meeting and kitchen facilities. Unlike serviced offices, though, managed spaces give you more control over layout and branding, so it feels genuinely like your own.
At a glance:
- Typical size: 20 to 500 desks
- Term length: 1 to 3 years
- Agreement type: License agreement
- Deposit: Typically 2 to 3 months’ rent
- What’s included: Fit-out and configuration costs are usually rolled into your monthly rent, along with the essentials you’d get in a serviced space
Move-in speed: Usually a few weeks. If you need something more bespoke, it’s worth allowing yourself a couple of months for the necessary changes.
Exit costs: Depends on how much customisation you’ve done. Managed providers generally aim to keep this straightforward, though you may need to carry out some repairs to bring the space back to its original condition.
Best for: Businesses with some certainty about their growth plans who want a space they can shape around their brand and culture.
Leased Offices: Total Control, Longer Commitment
A leased office is your own dedicated workspace, rented directly from a landlord for the longer term. Unlike serviced and managed offices, you’ll typically get a blank canvas: furniture, layout, and the whole vibe is entirely up to you. You’ll also be responsible for everything from IT and utilities to cleaning, but in exchange you get complete freedom to build a space that reflects your brand.
At a glance:
- Typical size: 50 to 100,000 sq ft
- Term length: 3 to 15 years (the most common is a 5-year term with a break clause in year 3)
- Agreement type: Lease
- Deposit: Typically 3 to 12 months’ rent, depending on covenant strength. Landlords often use a “profits test,” where demonstrating net profits of 3x the annual rent for three consecutive years can mean no deposit at all
- What’s included: Just the rent. You’ll pay service charge and business rates on top, and take care of everything otherwise bundled into a serviced space
Move-in speed: Takes longer, to allow for legal processes and any fit-out required. It’s worth planning a few months ahead.
Exit costs: You’ll need to hand back the unit in the same condition it was originally taken in, known as dilapidations. Budget around £15 to £25 per sq ft for this, and it’s always worth carrying out a schedule of condition before you move in.
Best for: Businesses ready to put down roots for the mid-to-long term and create a totally bespoke environment.
Serviced vs Managed vs Leased Offices: Which Is Right for You?
It really comes down to how much flexibility you need versus how much control you want:
- Choose serviced if you value flexibility above all else and want to keep your options open.
- Choose managed if you’re looking for a middle ground: some certainty over growth, with the ability to make the space your own.
- Choose leased if you’re in it for the long haul and want complete control over how your office looks, feels, and runs.
Still unsure which office setup is right for you?
Stoneway provides tenant-only advice across the serviced, managed and leased markets, helping you compare the true costs, flexibility and responsibilities before making a decision.
Get in touch with the Stoneway team to learn more.
PLEASE NOTE: All figures are indicative and will vary depending on the building, provider, agreement, occupier covenant and level of customisation required.
