When starting a new business or looking to expand the current one, one must make a critical decision of choosing the right type of workspace for their business. Nowadays, managed offices and coworking spaces are highly sought after by businesses, entrepreneurs and startups who desire a professional workspace without the hassle of managing office operations such as electricity bills, cleanliness, and other amenities.
Both Coworking Spaces and Managed Offices have their pros and cons; ultimately, the key to making the right choice is to evaluate your business’s goals, budget, culture, and work style and weigh the pros and cons of each option.
Here is a guide that will lay out the pros and cons of both types of workspaces and will assist you in choosing the right type according to your requirements.
In essence, the key difference between a managed office and a coworking space is the level of “shared” amenities. While a coworking space can be referred to as a shared office, a managed office is a private workspace with clear demarcation and separation from other tenants, like having your own room in a big house.
Both coworking spaces and managed offices provide privacy through private phone booths, meeting rooms, and conference rooms. However, managed offices are more customised to meet the exact design requirements of the tenant, whereas coworking spaces are designed to encourage collaboration and sharing of amenities.
Here are the key differences between Coworking Spaces and Managed Offices
Cost: Various research and surveys over the years have shown that cost is the most critical factor for businesses to ponder while deciding the type of workspace.
In terms of cost, coworking spaces are generally more affordable, with monthly or daily rental prices often much lower than managed office spaces. However, pricing can vary depending on the category of the space and design customisations.
Managed offices usually have higher starting costs, including a security deposit equal to six months’ rent, plus additional furniture expenses, but may be more cost-effective in the long run. Coworking spaces are more flexible, with short-term rental options, whereas managed offices typically have longer rental agreements.
Here is a brief of estimated costs that one would incur while choosing a coworking space in Gurgaon or a Managed office in Gurgaon.
Coworking space in Cyberhub, Gurgaon: Cyberhub is considered one of the poshest localities to book an office space in Gurgaon. The average rentals per seat per month in Cyberhub comes to around 15k to 18k, with an average lease lock-in of 6 to 8 months and a security deposit of 1 to 2 months.
Managed Offices in Cyberhub, Gurgaon: In Cyberhub, several operators offer managed offices accustomed to the client’s specific needs. The average per-seat prices in these facilities come around 16k to 20k, however, managed offices generally require a lease lock-in period of 3 years and a security deposit of 6 to 8 months.
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Layout and Design: Coworking spaces are designed to encourage collaboration and feature a modern, community-inspired layout with shared amenities. In contrast, managed offices are more customised to the tenant’s requirements and offer more privacy.
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Customisation: Managed offices offer more flexibility for layout changes and customisation, while coworking spaces come pre-built with amenities.
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Brand Identity: Managed offices provide an opportunity to establish and showcase your brand identity, while coworking spaces may offer less flexibility in this aspect. With a managed office, you have the freedom to customise every aspect of your office, including the colour schemes, signage, and furnishings, keeping in line with your brand’s values and image.
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Setup and Upfront Costs: Managed offices require a higher upfront investment with costs for furnishings and a security deposit equivalent to six months’ rent. In contrast, coworking spaces have lower upfront costs and usually, the security deposits at such facilities if of one to two months.
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Privacy: Managed offices offer more privacy for companies that require confidentiality, while coworking spaces may not provide as much privacy due to shared amenities and open surroundings. Consider Managed offices as your personal space, while at coworking spaces, many other companies would be working under the same roof.
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Turn Around Time: Coworking spaces are move-in ready, while managed offices may take 6-8 weeks to become ready for occupation after signing the contract. The move-in time at managed offices can also increase considerably if the specific requirements are too niche to fulfill.
Finally, coworking spaces generally offer more location options, allowing employees to work from a location closer to home. While both coworking spaces and managed offices provide a professional working environment, managed offices generally offer more security and amenities, although many coworking operators are now open to customisations to offer the option of having a coworking or managed setup in the same unit.
These points should provide more clarity on the thought process behind having your own office and save you research time for your next move.
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