The new generation office spaces are here and they redefine the process of setting up a workplace. Whilst looking to scale your business or relocating to a better space, managed offices spare the hassle arising from renting an office space.
This lets an organization solely focus on its core business. Lately, managed office solutions have pretty much become one-stop workplace solutions.
Managed Office Spaces Foundation
The foundation of Managed office is best denoted as an evolution of flexible spaces. Managed offices fill in all the infrastructure-related gaps or shortcomings that traditional offices have created. These offices act as a workplace solution where a service provider is responsible for the office design, idea, fit, operations, and others.
Now with the time saved from outsourcing a managed office provided for infrastructural needs, companies can better drive their core business agendas. Major brands have opted to shift from traditional working spaces to managed office spaces, and the credit goes to the perks it introduces.
The primary, notable perks of these workspaces are costs, minimal capital investment (Capex), and a flexible lease agreement. These factors are rarely found in conventional working spaces.
Other sets of perks that companies can personally curate based on the structure of managed offices are – gaining new market reach, increasing efficiency among employees, infusing collaboration or a sense of community, and more.
Hiring a Managed Office Space Solution Provider
The process to set up an office is feasible if you choose a managed office service provider. The process is effortless and kick starts when the company hires the right service provider.
- Now, the service provider interviews the company and evaluates their needs, and draws the perfect model for them.
- The service provider would then start hunting the right property, taking into consideration the client’s needs.
- Negotiating with the landlord and leasing the space is the service provider’s job. Service providers also incur the changes incurred all along the process.
- The next phase begins here, i.e. designing the place and bringing it to life. They envision and then engineer an office design as expected by the client. It includes activities such as furniture, fittings, and more.
- Engineering is not the end process of managed places, and this is the beauty of this service. They also look after the needs after the company has moved into the space. These activities or requirements include housekeeping, HVAC, hospitality, security, etc.
Benefits of Leasing Managed Office Spaces
A trend-setting workplace is what employees love and fancy. Such workplaces have the right environment which induces creativity and productivity.
Here is the brief of perks offered by managed office spaces to office managers (Operations Team, Admin Teams, COO) who are on the lookout for office spaces.
Easy Relocation – Conventional spaces take time to set up and the job of renting a space and getting an in-house team to renovate it is often daunting.
Managed office spaces are the exact opposite of the previously stated fact; they are easy to move in. Leasing a managed office space would only require a minimum of 6 to 8 weeks to relocate into prime locations, and what’s noteworthy is, the entire process is outsourced.
While the service providers would set up the office, the company can immediately get started with business operations.
Flexibility – Flexibility is not only limited to the aesthetic of the office space, it also is a part of the terms and conditions of the lease contract. These terms and conditions are unlike traditional spaces and provide flexibility in the duration of the contract. This means, the time period for which a company wishes to lease the space, is flexible.
Conventional agreements require a company to lease for 5 years, for starters but managed offices let a company lease a workplace for 1-3 years as well.
Growth stage Start-ups, enterprises, corporates that seldom have high budgets would find it easy to relocate to managed offices and can instantly get started with their core business. Relocating is feasible and quick, which is exactly why managed offices are the best choice.
Cost Saving – Cost incurred at the time of moving into the spaces is cut short in a managed workspace. Other infrastructure-related expenses added to the company book of accounts, it yet again cut short.
Companies are not obligated to pay any charges upfront. They rather are obligated to make payments in monthly or quarterly frequency. Companies find it easy to come in terms with the flexible terms of managed offices.
The cherry on top is a transparent structure, where the company would not bear any additional charges.
Productive Working Environment – The aura of such open spaces especially contributes to the productivity of employees. Managed Spaces comprise multiple open spaces which are all interlinked and consist of movable furniture. This only adds to the efficiency of the employees since they can communicate and collaborate easily.
Also, the service provider would look after any other infrastructural requirements, including, COVID precautionary measures.
Amenities within Managed Office Spaces
As aforementioned, companies are the masters of the space in concern, and they decide how their work would turn out. The company would design the layout of the office, the shapes, and the design of every nook and corner. Fixtures, furniture, and other amenities are all part and parcel of managed office solutions.
See the list of services provided within a general contract of managed office solutions.
- Concierge Area
- High-speed Internet
- Meeting Rooms
- Tech-enabled Training and Board Rooms
- Private and manager cabins
- Event rooms for efficient networking
- Ergonomic Furniture
- Recreational Areas
- Fitness hubs
- Parking and 24/7 security
Managed office solutions have become more of a cost-saving tactic for all types of companies lately. This feature of managed office solutions is exactly why companies are choosing to adopt this strategy at the time of establishing a physical presence.
The cost saved while leasing a Managed Office directly lets companies grow, as the money saved would contribute to the core operations of the company.
Reputed brands, including the global giants Microsoft, Facebook, Citi, Adidas, Google, and Salesforce have already opted for managed office solutions.
The reason why such companies have opted for this trend-setting workplace solution is tech-enabled workspaces and flexibility. These features are a major contributor to employee engagement and ultimately, employee productivity.
Industries whose needs best suit managed office solutions:
IT – Companies from this sector depend on Tech-based solutions and related resources, which are a part of managed office solutions. The highest demand for managed office spaces comes from this industry.
It is because the amenities (as stated above) included in the contract are exactly what IT companies require. So, managed offices basically drive the success of IT companies.
Unicorn and Unicorn Companies – They choose to go out of their way to provide an unconventional working space for their employees, a rather large dimensional space.
Managed office solutions perfectly fuel such needs of both companies and its employees. Some of the industries we are referring to are BPOs/KPOs, BCOs, FinTech, Edtech Industries, and so on.
Entertainment – Collaborating is a major part of the entertainment industry, which is the stepping stone to creative ideas. Conventional office spaces do not quite contribute to this factor. This is exactly why companies from this industry refrain from choosing traditional office spaces.
Companies from the entertainment industry have been a major contributor to the growth of managed office spaces.
Customer Service – Customer service companies interact with their clients daily over sound mediums. Managed office spaces provide a layout where employees would not get distracted and the company’s clients would feel they are being heard.
Conventional office space is not a great workplace for these companies, as employees cannot afford distraction. This is why companies from the customer service sector are also looking to hire managed office solution providers. These efficient spaces reduce funds spent per resource.
Presently, managed office solutions are majorly part of tier 1 cities, and less likely a part of tier 2 or less populated cities. Here are some statistics that feature the present managed office adaptation ratio.
- Managed office solutions providers are gaining popularity in the real estate sector. They have gained quite an audience and their services are rapidly increasing.
- Managed offices are now part of a majority of business models. The rate at which new and existing companies would infuse managed offices solutions in their model is projected to rise at 10%, every year.
- Present statistics claim 10% of companies from top-tier cities have already chosen managed spaces solutions. Furthermore, it is projected that the number would rise to 25% in a matter of a few years.
How much would leasing a Managed Office Space cost you?
Companies incur heavy costs in the process of setting up a physical hub, making it nothing less than a nightmare for organizations in their initial stage. Managed office spaces are the perfect solution for companies that do not want to invest a large chunk of their finances in an office setup.
A bunch of costs are not part of managed offices, while they are a part of traditional lease agreements. Charges that service providers take care of, in managed office agreements are – solicitor fees, agent fees, and stamp duty. So, companies only need to pay a recurring fee, in monthly, quarterly, or semi-yearly intervals.
Flexible lease agreements in managed office spaces are yet another reason companies can cut a portion of expenses.
Basically, business vision and reality are two different aspects. Companies cannot predict their future or what their needs would be 2 years from now, they can only visualize. This is exactly how companies can cut their expenses, as the lease agreement in managed office space is flexible.
Companies do not have to commit to the requirements they stated at the time of signing the lease and can request a change in the requirements. This is not a part of traditional spaces, where companies need to commit to the terms of the agreement for 5-6 years.
In managed office spaces, the tenure of the lease is flexible and starts at 1 year to 3+ years. When the agreement is due, companies can choose to either renew the contract or draft a new one. In the new agreement, companies can choose the accommodation of a completely new set of amenities or requirements.
Emerging Trends in Consideration with Managed Office Space
Managed office spaces are the trendsetters of good working environments. They are the likely option for millennials who consist of 47% of the workforce. Here is how the future of managed spaces is likely to unfold.
- Covid hampered the growth of the managed spaces industry, but the damage was not devastating. Just with a few months of backlash, the industry soon bounced back with the help of their unique campaign and ideas.
- The flexibility of managed office spaces is in highlight since remote work culture is the new normal. This solution would be the answer to distributed work setup needs of companies in the future.
- Speaking of future infrastructure, it would be spacious constructs, open spaces, and would include natural elements.
- Health, wellness, and safety, which are a priority for businesses lately, are part of managed offices solutions. It would include best of covid precaution measures and instant health care solutions at doorsteps.
- Companies based from tier 2 have also opened up to the concept of managed offices as distributed workforce is now a part of every company.
Comparison Measures Between Traditional Office, Managed Office, and Coworking Spaces
Managed office spaces and coworking spaces are interchangeably used by the masses. However, they are two different concepts, and this section features the difference in brief.
Coworking spaces – This office solution is best for budding entrepreneurs, who wish to execute an idea into business, and need to collaborate with several individuals. Entrepreneurs collaborate in a community and craft a business, working from coworking spaces.
This solution is ideal for budding entrepreneurs because it facilitates hiring a desk or an area for a few hours. Also, it is possible to lease an area for a tenure of several months to even years. Factors which are part of this solution are – Community, Openness, Collaboration, Sustainability, and Accessibility.
Managed offices – This solution is ideal for medium to large-scale companies. Features which are part of this solution are – tech-enabled infrastructure and tons of amenities that lead to smooth operations.
Traditional Offices – Herein, companies need to sign long terms, inflexible contracts, pay rent upfront, and incur other misc charges. It also comprises the burden to set up the infrastructure personally and limited social interaction.
Set of process
Traditional Workplaces – The process is manual here, and the companies need to bring in an in-house development team and set up their workplaces themselves. Considering the lease agreement, companies have to make long term commitments to landlords and also pay heavy upfront charges.
Managed Spaces – The process includes hiring a third-party service provider and signing a lease-based agreement. This third-party service provider would then arrange for the infrastructural requirements of the company. The company can then move in quickly and get started with the business operations directly.
Coworking Spaces – These are lease-based agreements as well, the terms of which are not similar to managed offices. A company needs to sign a license agreement stating fees, permitted use, termination, and most importantly coworking space rules. The maximum networking facility herein works like a charm.
Resource Requirements of Setting up a Managed Office Space
Companies do not need to gather resources of any kind when they choose managed office spaces. It is the service providers who provide end-to-end infrastructure requirements. The service providers cater for all the resources required right from the beginning of the contract till its termination.
The monthly or quarterly payment is the only requirement companies need to keep up with. Companies can draft their requirements and the third-party service provider would cater for them all. The element of flexibility lets companies change the agreements at their will.
Leasing Prospects of Managed Office Spaces
Managed office spaces do not have long-term lease agreements or commitments. Companies can choose to lease an area for a duration below 5 years. There is also a facility of renewing the contract should wish to retain the space for a few more years.
Companies also hold the authority to make changes in the contract as they deem fit, upon mutual agreement. The service provider would oblige to assist in the best possible way.
The new normal, i.e. remote working has changed the accommodation requirements of companies lately. Scalability is a factor of consideration now as companies with a workforce strength, say, 200 people, would now want to downscale.
Suppose 100 workers are working from home, then the company would now only want an office space sufficient for 100 people.
It is the opposite for start-ups that have transitioned into the adult stage and are growing in numbers. They would want to up-scale. Such flexibility is only part of managed office spaces.
Also, managed office solutions are the answer to multi-site operations for companies that are open to the approach of a decentralized workplace. For instance, companies based out of Gujarat can set up offices at different prime locations across Surat, Ahmedabad, Vadodara, Rajkot, Gandhinagar, and more.
Employees can choose to work from a location closer to their homes, rather than relocating close to the central office location of the company. This is the kind of efficiency managed offices provide to companies.
Also, the professional assistance provided at the time of setting up an office is unmatchable.
Benefits of Managed Office Space at DevX
This article may have given you a thorough idea of what Managed Office Spaces are and how they can work for you as well as your organisation. If you are still not sure whether Managed Office is an ideal solution for your organisation, then get in touch with our experts at DevX.
With pan-India presences, we at DevX have served clients like HDFC Credila, BASF, Thomson Reuters, TalentRupt, etc, dealing in a variety of industries. After dedicatedly working to provide best of the class office facilities and catering to the individual needs of each enterprise we now have a portfolio of experience that helps us serve you better.
There are a host of benefits that a Managed office offers, flexibility, ease of access, etc. However, with all these benefits, our clients at DevX get an absolute transparent pricing method as well as the best in breed offices.
Connect with us, and our experts will be available right away to help you set up your next ideal office space!