The Complete Guide to Serviced, Managed, and Leased Office Space
(Now With Key Industry Terms Added)
Quick Definitions
✔Serviced Office
Flexible & plug‑and‑playA Serviced Office is a fully furnished, ready-to-use private workspace, designed for teams that want flexible office solutions without any upfront costs.
Features:
- Plug-and-play office space with furniture, IT, utilities, cleaning, and reception.
- One all-inclusive monthly price (pure OPEX).
- Flexible term options (1–12 months).
- Minimal customisation.
✔Managed Office
Custom & turnkeyA Managed Office is a customised private workspace delivered turnkey for your team.
Features:
- Tailored layout, furniture, branding.
- All-inclusive pricing.
- Medium-term commitments (12–36 months).
- Fit-out amortised into monthly rent.
- Ideal for teams needing more control than a shared office space but less than a full lease.
✔Leased Office
Maximum controlA Leased Office is a traditional long-term office space rented directly from a landlord.
Features:
- Pay per m² / sq ft.
- Manage your own fit-out, furniture, utilities, cleaning, IT.
- Longest commitments (3–10 years).
- Highest control and often the lowest long-term cost.
✔Coworking Desk / Dedicated Desk
Individual workstationsA coworking desk or dedicated desk is an individual workstation in a shared office space, ideal for freelancers, remote staff, or startups who want flexible offices without leasing a full room.
- Coworking Desk → Hot desk in a communal area.
- Dedicated Desk → A guaranteed desk in a shared environment.
- Complements Serviced Offices for small teams and hybrid workers.
Space Efficiency Differences
Space efficiency is one of the most overlooked factors when comparing office space costs.
| Office Type | Space Required | Why |
|---|---|---|
| Serviced Office | ~6 m² per person | Shared meeting rooms reduce private space needs. |
| Managed Office | ~7–8 m² per person | Some exclusive + some shared areas. |
| Leased Office | ~10 m² per person | You must build all internal rooms. |
Cost Comparison Example (20‑Person Team — in USD)
A) Leased Office Space
200 m² (10 m² per person)
Fixed OPEX
- Rent ($380/m²): $76,000/yr
- Service charge ($60/m²): $12,000/yr
📌 Total fixed OPEX: $88,000/yr
Variable OPEX
- Cleaning: $8,000–13,000
- Internet/telecom: $2,500–4,000
- Coffee/tea: $3,000–5,000
- Supplies: $2,500–4,000
- Security/access: $3,500–5,000
- Insurance: $3,500–5,000
📌 Total: $23,000–36,000/yr
CAPEX
- Fit-out ($420/m²): $84,000
- Furniture ($1,800 per person): $36,000
📌 Total CAPEX: $120,000 upfront
Office Manager
$40,000–52,000/yr
B) Serviced Office (20 people)
A Serviced Office provides fully equipped, ready-to-go private workspace under one predictable monthly fee.
$520 per person/month → $124,800/year all-in
Includes:
- Furniture, internet, utilities, cleaning
- Reception and meeting rooms
- Coffee and shared amenities
- No CAPEX.
- Flexible term from 1–12 months.
- Fastest move-in option of all flexible office solutions.
Misconceptions & Hidden Costs
💡 Mistake #1: Comparing rent only
Lease rent excludes:
- Fit-out & furniture
- Cleaning & utilities
- Internet & IT setup
- Service charges
- Taxes & insurance
- Maintenance
- End-of-lease dilapidations
A Serviced Office includes all of these.
💡 Mistake #2: Ignoring space efficiency
- Serviced Offices: ~6 m² pp
- Leased Offices: ~10 m² pp
Even with lower rent per m², a lease often costs more because you need more space.
Hidden Costs in Leased Office Space
- Fit-out ($400–1,200/m²)
- Furniture
- Legal fees
- Deposits
- Business rates
- Maintenance
- Long move-in times (3–6 months)
Hidden Costs in Serviced Offices
- Extra meeting-room hours
- Premium IT upgrades
- Additional branding
- Dedicated network lines
Still significantly fewer unknowns than leasing.
When Each Office Space Type Makes Financial Sense
✔️ Teams 1–20: Serviced Office / Coworking / Dedicated Desk
Best for:
- Fast growth
- Hybrid teams (Private Workspace + Coworking Desks)
- No desire for upfront investment
- Need for flexible offices
- Predictable all-inclusive pricing
✔️ Teams 20–30: The Crossover Zone
A leased office space may appear cheaper, but fit-out + furniture + office manager removes most of the savings.
Choose Serviced Offices or Managed Offices if:
- You want flexible office solutions
- You want $0 CAPEX
- You don’t want facilities management overhead
✔️ Teams 30+: Leased Office Space or Managed Office
Best for:
- Stable headcount
- Brand-heavy environments
- Long-term planning
- Ability to fund CAPEX
A traditional lease becomes cheaper long-term, but not flexible.
Flexibility Comparison (Serviced Office vs Managed vs Lease)
| Feature | Serviced Office | Managed Office | Leased Office |
|---|---|---|---|
| Contract Length | 1–12 months | 12–36 months | 36–120 months |
| Branding | Limited | Moderate | Full control |
| Upfront Costs | None | Low | Very high |
| Move-In Time | 1–5 days | 2–10 weeks | 3–6 months |
| Scalability | Very high | Moderate | Low |
| CAPEX | $0 | Low–Medium | Very high |
If you want flexibility, Serviced Offices and Coworking Desks provide the fastest and most adaptable solution.
CAPEX vs OPEX in Office Space Planning
Traditional Lease (High CAPEX)
- Fit-out, construction, furniture
- Long-term OPEX: rent, utilities, service charges, cleaning
- Unpredictable maintenance costs
Serviced Office & Managed Office (OPEX Only)
- No upfront CAPEX
- All-inclusive monthly price
- Ideal for teams needing flexible office solutions
- Easy to scale up/down with coworking desks, private offices, or extra rooms
Conclusion: Which Office Model Fits Your Team?
Choose a Serviced Office if:
- You have 2–20 staff
- You want maximum flexibility
- You want private workspace with zero setup
- You prefer predictable OPEX
- You don’t want facilities admin
- You want support for Coworking Desk and Dedicated Desk options
Choose a Managed Office if:
- You want custom layout & branding
- You want all-inclusive pricing
- You don’t want to manage a fit-out
- Team size: 15–60 employees
Choose Leased Office Space if:
- You have 30+ staff
- You want full creative control
- You can fund high CAPEX
- You want the lowest long-term cost
- You don’t need a flexible term
