The modern business landscape demands dynamic workspace solutions that cater to the unique needs of each enterprise. Managed office spaces offer an alternative to traditional leasing arrangements, allowing businesses to customize their work environment and services.
620 N LaSalle is a leading provider of offices in Chicago, offering businesses of all sizes a turnkey workspace solution tailored to their specific needs. We will explore the concept of managed office spaces, highlighting their unique features, benefits, and drawbacks. Finally, we’ll compare these spaces with other options to help you choose the right workspace solution.
Managed Office Space Explained
A managed office space is a workspace solution tailored to a business. Unlike traditional leases, managed spaces offer more flexibility and customization. These spaces are not confined to predefined layouts or fixed terms.
Managed offices give businesses the freedom to design and brand their environments to align with their corporate identity. This distinctive approach sets managed office spaces apart as a versatile and client-centric solution.
Managed Office Space: Pros
Managed office spaces are a compelling alternative to traditional leasing arrangements, offering many distinct advantages.
Full Customization and Branding Opportunities
In a managed office space, a business is provided a canvas to fully customize the work environment and infuse its brand identity into every aspect of the space. From layout to decor, this level of personalization fosters a unique, inspiring atmosphere.
Payment Based on Space Rather Than Desks
Unlike some office spaces, where rent is based on the number of desks, managed workspaces charge according to the square footage occupied. This approach is more economical for many companies and allows a business to optimize the space for its needs.
Streamlined Accounting Processes
Managed office agreements typically feature consolidated monthly invoices, simplifying accounting and budget management. With a single, predictable payment, companies can maintain better control over financial planning.
Flexibility in Deposit Requirements and Reduced Setup Costs
Managed offices often require lower upfront deposits compared to traditional leases. Additionally, businesses can enjoy reduced setup costs because many essential services and amenities are already in place.
Client-Centric Amenities for Enhanced Service
Many managed workspace providers prioritize client satisfaction by offering amenities such as concierge services, modern meeting rooms, and advanced technology infrastructure. These amenities enhance productivity and contribute to a more favorable working environment.
Cost Transparency and Absence of Additional Fees
Unlike traditional leases that may include hidden costs or maintenance fees, managed office spaces generally come with transparent pricing structures. Businesses can budget with confidence, knowing that additional, unexpected expenses are unlikely to arise.
Managed Office Workspace: Cons
Any business owner who is looking for new office space must carefully weigh these drawbacks before deciding whether to choose a managed office space or another option.
Higher Overall Cost Compared to Traditional Leases
While managed spaces offer flexibility and convenience, they often come at a higher overall cost than long-term traditional leases. Businesses must weigh this cost against the benefits of customization and flexibility.
A More Time-Intensive Setup Process
Setting up a managed office space can be more time-consuming, as customization and branding require careful planning and execution. Companies looking for immediate occupancy may find this aspect challenging.
Serviced Office Space Explained
A serviced office space, often found within a coworking space, is a fully furnished and equipped office inside an environment that is shared by multiple businesses.
Like managed offices, serviced office providers typically offer a range of amenities, such as high-speed internet, reception services, and conference rooms.
Serviced office spaces differ from managed office spaces in a few key ways. First, serviced office spaces are typically more standardized than managed office spaces, reducing setup time and costs. Second, serviced office providers typically offer shorter contract terms. Finally, these offices offer less personalization in the way of amenities and services.
Serviced Office Spaces: Pros
When you're considering your office space options, it's crucial to understand the distinctions between managed office spaces and serviced office spaces. Both offer unique advantages, catering to different business needs.
Swift and Straightforward Setup
The hallmark of serviced office spaces is their rapid readiness. Businesses can move in and start working almost immediately, avoiding the delays associated with extensive setup and customization.
Shorter Contract Terms for Increased Flexibility
Serviced office agreements typically feature shorter contract terms, providing businesses with the flexibility to adapt to evolving needs and market conditions.
Comprehensive Amenities and Facilities
Serviced spaces offer a wealth of amenities, from reception services to fully equipped meeting rooms, making it easy for businesses to meet their operational requirements.
Collaboration and Networking Opportunities
Serviced office providers host frequent networking events and foster collaboration among tenants, creating opportunities for meaningful interactions and partnerships.
With all-inclusive pricing, serviced offices simplify financial management while offering amenities that help attract and retain employees. These might include an on-site gym, free snacks and beverages, a luxurious break room, and a convenient location along transit routes.
Lower Initial Setup Costs
Unlike traditional leases that may require substantial upfront investments in furniture and infrastructure, serviced offices have minimal setup costs. Typically, office furniture is provided by the facility, along with equipment like copiers and printers.
Fewer Concerns About Dilapidations Liability
In traditional leases, tenants may be liable for the cost of repairing or restoring the space at the end of the lease term, known as dilapidations. Serviced offices relieve tenants of this concern, as maintenance and upkeep are typically managed by the provider.
Serviced Office Spaces: Cons
Serviced office spaces aren’t right for every business. Business owners should consider the potential drawbacks.
Limited Opportunities for Branding and Customization
While serviced offices offer convenience, they may have fewer opportunities for extensive branding and customization. Businesses seeking a unique, fully tailored space may find serviced offices less accommodating in this regard.
Higher Cost per Square Foot
The convenience and amenities of serviced office spaces often come at a premium cost per square foot compared to other options. But while the office might be smaller, workers will have access to the larger shared facility and all of the amenities it offers.
Additional Charges for Certain Services and Amenities
Some services and amenities, such as dedicated meeting rooms or specialized IT infrastructure, may incur extra charges beyond the standard lease fee.
How to Choose Between a Managed Office Space and a Serviced Office Space
Modern workspace solutions include diverse options that cater to the unique needs of businesses. Here, we’ve explored the differences between managed and serviced office spaces, shedding light on the advantages and considerations associated with each. The table below compares these two options, providing a clear overview:
Both managed offices and serviced office spaces have their merits. However, businesses that seek flexibility, convenience, and a fully equipped workspace have a clear choice in serviced office spaces.
With swift setup, shorter contract terms, comprehensive amenities, simplified accounting, and reduced initial setup costs, serviced office spaces at 620 N LaSalle empower businesses to focus on core operations and growth. For more information on the advantages of serviced office spaces, contact us today and elevate your workspace experience.
Table of Contents
Table of Contents