Serviced Office vs Managed Office vs Conventional Lease: What's the Difference?

If you’re looking for office space, you’ll quickly come across three terms: serviced office, managed office and conventional lease.

All three give your business somewhere to work, but the way you occupy the space, how much responsibility you take on and how long you commit for can be very different.

In simple terms:

A serviced office gives you a ready-to-use private office within a professionally managed building, usually on flexible terms.
A managed office typically gives one business its own dedicated space, with much of the fit-out and day-to-day management handled by a workspace provider.
A conventional lease gives you greater control over your space, but you normally take responsibility for fitting out, furnishing and running it yourself and make a longer-term commitment.

There isn’t one option that’s right for every business. The best choice depends on your size, budget, plans for growth and how much flexibility and control you need.

Serviced, managed and conventional offices at a glance

	Serviced office	Managed office	Conventional lease
Space	Private office, usually within a shared building	Dedicated space for one business	Dedicated space for one business
Typical commitment	Shorter and more flexible	Usually longer than serviced	Usually longest
Ready to occupy	Yes	Usually fitted to an agreed specification	Usually requires fit-out
Furniture	Usually included	Usually included	Usually occupier’s responsibility
Internet	Usually included	Usually included or managed	Occupier normally arranges
Utilities	Usually included	Usually included	Usually paid separately
Cleaning & maintenance	Managed by the provider	Managed by the provider	Greater occupier responsibility
Branding/customisation	More limited	Greater opportunity	Greatest control
Shared facilities	Common	Less reliance on shared facilities	Depends on the building
Upfront investment	Relatively low	Relatively low	Potentially significant
Flexibility	High	Medium	Lower
Management responsibility	Low	Low	Higher

Exact terms and what’s included vary considerably between buildings and providers, so always compare the detail rather than relying on the name given to the space.

What is a serviced office?

A serviced office is a private, furnished workspace that’s ready for a business to occupy, with the building and many of its services managed by a workspace provider.

Rather than taking a conventional lease and then arranging furniture, internet, utilities, cleaning and other services separately, much of this is provided as part of the office package.

Serviced office buildings will also commonly have facilities shared between customers, which can include:

Reception services
Meeting rooms
Kitchens
Breakout areas
Business lounges
Showers and changing facilities
Bike storage

The precise facilities vary from building to building.

The main attraction is simplicity. A business can move into an operational office relatively quickly without turning its office move into a major property and fit-out project.

Who are serviced offices suitable for?

Serviced offices can work particularly well for businesses that:

Want to move quickly
Don’t want a long-term property commitment
Expect their headcount to change
Want predictable monthly costs
Don’t want to manage an office themselves
Need a professional Central London location
Want access to meeting rooms and other facilities without creating their own

Although serviced offices have historically been associated with smaller businesses, they are now used by organisations of many different sizes.

What is a managed office?

A managed office sits somewhere between a serviced office and a conventional lease.

The business typically gets more dedicated, self-contained space than it would in a traditional serviced office arrangement, but a workspace provider still takes care of much of the work involved in creating and running the office.

Depending on the arrangement, this might include:

Designing the workspace
Fitting it out
Providing furniture
Installing connectivity
Managing utilities
Cleaning
Facilities management
Repairs and maintenance

The occupier therefore gets something that feels more like its own office, without necessarily having to create and operate that office from scratch.

Managed offices are often more customisable than serviced offices. A company may be able to specify layouts, meeting rooms, collaboration areas, furniture and branding.

That additional customisation usually requires a longer commitment than a serviced office.

It’s important to recognise that managed office is not a completely standardised term. Different providers structure managed solutions in different ways, so businesses should establish exactly what space, services and contractual arrangement they are being offered.

What’s the difference between a serviced office and a managed office?

The biggest difference is usually the balance between flexibility and control.

A serviced office is generally already fitted out and ready for occupation. The business moves into an existing private office and shares some of the wider facilities within the building with other customers.

A managed office is more likely to be created around the requirements of a particular occupier. It may comprise a self-contained floor or larger private area, with greater scope for customisation and branding.

Put simply:

Serviced office = move into an office that’s already been created.

Managed office = have an office created and managed for you.

There are exceptions, and the distinction between the two models is becoming increasingly blurred.

What is a conventional office lease?

With a conventional office lease, a business normally rents space from a landlord for an agreed period and takes much greater responsibility for creating and operating its workplace.

Depending on the property and agreement, the occupier may need to arrange and pay for:

Office fit-out
Furniture
Internet and IT infrastructure
Electricity and other utilities
Business rates
Service charges
Cleaning
Repairs and maintenance
Insurance
Security
Meeting rooms and kitchen facilities

Professional and legal advice is also commonly required when agreeing the lease.

A conventional lease therefore gives a business considerable control over its workplace, but that control comes with additional responsibility.

What’s the difference between a managed office and a conventional lease?

Both can give a company a dedicated office that looks and feels like its own.

The fundamental difference is who takes responsibility for creating and running it.

With a conventional lease, much of that responsibility sits with the occupier.

With a managed office, much of it is outsourced to the workspace provider and incorporated into the agreement.

A managed office can therefore appeal to businesses that want the identity and privacy of their own workplace without having to become experts in running commercial property.

Which office option offers the most flexibility?

A serviced office will generally provide the greatest contractual flexibility.

Businesses can often commit for shorter periods than they would with either a managed office or conventional lease.

That can be particularly useful if you’re:

Growing quickly
Unsure about future headcount
Opening a new London office
Testing a new market
Working on a time-limited project
Changing your approach to hybrid working

Managed offices generally require a longer commitment because the provider may be investing in creating a workspace specifically for the occupier.

Conventional leases tend to involve the greatest commitment, although individual lease terms vary considerably.

Which is cheaper: serviced, managed or conventional office space?

This is one of the most common questions – and one of the easiest comparisons to get wrong.

Don’t compare the headline price alone.

A conventional lease may have a lower headline property cost, but that isn’t necessarily the total cost of occupying the office.

Businesses may also need to budget for:

Fit-out
Furniture
Business rates
Service charges
Electricity and utilities
Internet
Cleaning
Maintenance
Repairs
Insurance
Professional fees
Reinstating the property at the end of the lease

With a serviced or managed office, many of these costs may already be incorporated into the monthly price.

The better comparison is therefore total occupancy cost over the period you expect to use the office.

Which office option is quickest to move into?

A serviced office will usually be the quickest.

Because the office is already fitted, furnished and connected, there is relatively little physical work required before occupation.

A managed office can take longer because the space may need to be designed or adapted for the new occupier.

A conventional office can require significantly more preparation if a complete fit-out, furniture, connectivity and other services need to be arranged before staff can move in.

For a business facing a deadline, speed of occupation can be just as important as price.

Which option gives you the most control over your office?

A conventional lease will usually offer the greatest scope for creating a completely bespoke workplace, subject to the terms of the lease and the landlord’s consent.

Managed offices sit in the middle.

They can give businesses substantial input into the design and identity of their workplace without requiring them to manage everything themselves.

Serviced offices tend to offer less customisation because the space has already been created, although many providers allow businesses to personalise their private offices.

What costs should you compare when looking at office space?

When comparing different office options, try to establish the total cost of occupation, rather than simply comparing rent or monthly licence fees.

Ask whether the quoted price includes:

Business rates
Service charges
Electricity and utilities
Internet
Furniture
Cleaning
Reception services
Building management
Maintenance
Meeting-room use
Printing
Tea and coffee
Security
Fit-out
Legal and professional costs

Also ask about any one-off costs at the beginning or end of the agreement.

This gives you a much more meaningful basis for comparing different offices.

What questions should you ask before choosing an office?

Before agreeing to any office space, it’s worth asking:

Exactly what’s included in the price?
How long am I committing for?
What happens if my business grows?
Can I reduce the amount of space I occupy?
What additional charges should I expect?
Can I customise or brand the office?
Are meeting rooms included or charged separately?
What are the building access hours?
Who is responsible for repairs and maintenance?
What happens when the agreement ends?

And perhaps the most important question:

What will this office actually cost my business over the whole period we expect to occupy it?

Which type of office is right for your business?

There isn’t a universally “best” way to occupy an office.

A serviced office could be right if:

Flexibility is particularly important.
You want to move quickly.
You want minimal management responsibility.
Your future space requirement is uncertain.
You prefer a simple monthly cost.

A managed office could be right if:

You want your own more self-contained workplace.
Branding and customisation are important.
You don’t want to manage the fit-out yourself.
You’re comfortable making a longer commitment.
You want greater control without taking on all the responsibilities of a conventional lease.

A conventional lease could be right if:

You have a stable, predictable space requirement.
You’re comfortable with a longer-term commitment.
You want maximum control over your workplace.
You’re prepared to invest in the fit-out.
You have the resources to manage the property and associated suppliers.

The right answer comes down to the balance your business wants to strike between flexibility, control, cost and responsibility.

Frequently asked questions

Is a serviced office the same as coworking?

No. Coworking generally involves using shared workspace or desks alongside people from other businesses. A serviced office usually provides your business with its own private office, although you may share facilities such as kitchens, lounges and meeting rooms.

Is a managed office a serviced office?

Both are forms of flexible workspace and there is some overlap between them. Managed offices are generally more self-contained and customised for a particular occupier, while serviced offices are more likely to be existing, ready-to-use offices within a shared building.

Do serviced offices include furniture?

Usually, yes. Desks, chairs and other basic office furniture are normally provided, although what’s included varies between providers.

Are business rates included in serviced office costs?

They commonly are, but businesses should always check exactly what is included in the quoted price.

Can I brand a serviced office?

Often, yes, particularly within your private office. The extent of the branding and customisation available will depend on the building and provider.

Do I need a solicitor to take a serviced office?

Serviced office agreements are generally simpler than conventional commercial leases. However, businesses should decide whether they need professional advice based on their individual circumstances and the agreement they’re entering into.

Can a serviced office accommodate a growing business?

Potentially. One advantage of a larger flexible workspace building is the ability to move into different space as a business changes, subject to availability.

The bottom line

Choosing an office isn’t simply a choice between flexible and conventional space anymore.

Businesses now have a spectrum of options.

At one end, a serviced office provides a ready-to-use workplace with high levels of flexibility and relatively little management responsibility.

At the other, a conventional lease provides greater control but usually requires a greater commitment of time, money and resources.

Managed offices occupy the space between the two.

Understanding those differences makes it much easier to decide what you’re actually looking for – and to compare different office options on a like-for-like basis.

About LentaSpace

LentaSpace provides flexible serviced office space across Central London, combining private offices with professionally managed buildings and flexible terms. Our team can help businesses understand their workspace requirements and find an office that suits their size, budget and plans for the future.

Serviced Office vs Managed Office vs Conventional Lease: What’s the Difference?