Managed office vs leased office
A managed office bundles space, fit out and running costs into one monthly figure. A conventional lease is cheaper per sq ft but puts the capital, admin and exit risk on you. Here is the honest comparison.
Where the real cost difference sits
Guide figures based on current UK market terms. Your numbers depend on city, building and term.
| Factor | Managed office | Conventional lease |
|---|---|---|
| The deal | One monthly figure covering the space and everything in it | Rent, plus rates, service charge, utilities and fit out |
| Term | Typically 2 to 5 years, break clauses common | 5 to 10 years, with a rent review and dilapidations liability |
| Fit out | Designed and paid for by the operator, built to your plan | Your capital, your project, often £40 to £100+ per sq ft |
| Upfront cost | Usually one to three months deposit | Deposit, legal fees, agent fees, fit out and furniture |
| Balance sheet and admin | One invoice, one supplier, minimal management time | Multiple contracts, a facilities burden and dilapidations at exit |
| Flexibility | Space can often be reconfigured or resized mid term | Fixed until break or assignment, which takes time to arrange |
| Best for | Teams of 15 to 150 wanting their own identity without the risk | Established businesses with capital and a long, stable plan |
| Cost over 5 years | Higher headline rate, far lower capital and exit cost | Lower rate per sq ft, but the true cost lands in fit out and exit |
Which route fits your business?
Choose managed if
- You want your own space without a capital fit out
- Headcount could move 20 percent either way
- You would rather not run facilities in house
- A dilapidations bill at exit is a risk you want to avoid
Choose a lease if
- You have a stable five to ten year plan
- You have capital for fit out and want to own the asset
- You need full control of the building and access
- You already have facilities management in place
Managed vs leased FAQs
What is a managed office?
A managed office is private space fitted out and run for you by an operator on one monthly invoice. You get your own floor, your own branding and a layout designed around your team, without buying furniture, signing utility contracts or taking on dilapidations.
Is a managed office cheaper than a lease?
The headline rate is higher, but a lease adds rates, service charge, utilities, furniture, fit out capital and a dilapidations bill at the end. Once those are included, managed space is often cheaper over a three to five year horizon for teams under about 150 people.
When does a conventional lease still win?
When you have the capital, a stable long term plan and want full control of the building and its fit out. At larger sizes and longer terms, the cost per sq ft advantage of a lease starts to outweigh the flexibility of managed space.
Can OfficeZen advise on both?
Yes. We price managed, serviced and leased routes side by side so you can see the real total cost of each, and our service is free to you.
See both options priced properly
Tell us your city, headcount and timescale. We model managed and leased side by side and come back with a shortlist within 48 hours, at no cost to you.
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