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Difference between office and coworking
Difference between office and coworking
HOW IS A MANAGED OFFICE DIFFERENT FROM A COWORKING OFFICE?
Coworking spaces have been rising in popularity among start-ups and growing companies for quite some time. Of late, commercial real estate has witnessed another emerging trend, namely Managed offices.
So, what is a Managed office? Simply put, it is a tailored workspace offered and managed by a third-party operator. Unlike a coworking space where multiple companies work under the same roof, managed offices are dedicated spaces for your business and reflect your brand identity.
Managed offices are different from Coworking spaces in many aspects, from design and layout to costs and lease terms. Here are the top 12 differences to consider when you opt for a Managed office vs. Coworking office space.
12 MAJOR DIFFERENCES BETWEEN MANAGED OFFICE VS COWORKING OFFICE
Layout and Design
Office Environment and Culture
Customization
Flexibility for Expansion
Flexibility of Location
Setup and Upfront Costs
Autonomy
Privacy
Transition Time
Opportunities for Collaboration
Brand Identity
1. Layout and Design
Since coworking is designed to facilitate collaboration and ease of sharing amenities, it follows a creative, modern, and community-inspired open floor design complete with hot/dedicated desks, meeting rooms, recreation areas, and the like.
A managed office, however, is more compartmentalized than shared offices. It is more like a private office — you can choose to have cubicles, open workstations, or cabins, depending on your preference & requirements. It will also have meeting rooms, lounges, and other segregated areas within the space.
2. Office Environment and Culture
Coworking spaces typically have an informal, casual, and relaxed ambiance. Start-ups, evolving brands, and freelancers often prefer shared offices, so such spaces naturally radiate an entrepreneurial spirit. As managed offices are formal workspaces ideal for mature businesses, they tend to exude the look and feel of a corporate or professional setup.

3. Customization
Customization is another factor to consider in the coworking space vs. managed office comparison. A coworking office offers limited room for customization — it comes pre-furnished and pre-designed with all amenities. On the other hand, managed offices are empty or bare shell spaces you can customize according to your preferences and brand identity.
4. Flexibility for Expansion
Compared to coworking spaces, a managed office offers less flexibility for expansion. When you work out of a shared office, you can upsize or downsize your team by adding or removing more desks to your package. However, managed office terms don’t allow you to remove seats during the contract period. Some service providers may allow you to add more seats at an additional cost.
5. Flexibility of Location
A top advantage of coworking offices is the flexibility of location. Neighborhood office providers like wishcoworker offer offices in multiple locations, making it easier for your employees to work from the one nearest to their residence. Managed offices, however, are location-specific and don’t have the flexibility of location.
6. Setup and Upfront Costs
A managed office has comparatively higher upfront costs than shared spaces and attracts setup costs too. When you opt for a managed office, you will have to pay a security deposit, which is typically equivalent to the rent of 4 to 6 months. You should also contribute towards the expenses of furnishing — between 60% to 80% of the total furnishing costs. The coworking office is all fully furnished by the operator and you pay a relatively less deposit amount.
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