In the world of office real estate, terms like “coworking,” “flex space,” and “managed spaces” are frequently used. While they all promise flexibility and adaptability, they are not interchangeable.
The following explores the similarities and distinctions between coworking and managed spaces, offering insights into their roles in modern workplace strategy.
Defining Coworking: A Collaborative Approach
Coworking spaces are typically open, communal environments where individuals or small teams from different companies share an office. They are best known for:
- Flexibility: Memberships are often monthly or even daily, ideal for freelancers, startups, and remote workers.
- Community Focus: These spaces foster networking through shared amenities, events, and collaboration opportunities.
- Turnkey Solutions: Coworking providers manage everything from utilities to cleaning, allowing users to focus solely on their work.
Examples of global coworking brands include WeWork, Spaces, and Regus, each offering vibrant environments that cater to varied professional needs.
What Are Managed Spaces?
Managed spaces, on the other hand, represent a hybrid model that combines flexibility with customisation. Key features include:
- Tailored Office Design: Unlike coworking, managed spaces allow businesses to brand and customise the layout of the office.
- Exclusivity: These spaces are typically leased to a single company or business unit, offering privacy and control over the space.
- End-to-End Management: The provider handles utilities, maintenance, and often IT infrastructure, allowing companies to focus on their core activities.
Prominent examples of managed space providers include The Office Group and Industrious.
Coworking vs Managed Spaces: Key Differences
While both options fall under the broader category of flexible office solutions, they cater to distinct audiences. Here’s a side-by-side comparison:
| Aspect | Coworking | Managed Spaces |
|---|---|---|
| Audience | Freelancers, startups, remote workers | Established SMEs, enterprises |
| Privacy | Shared spaces, limited privacy | Dedicated and customisable spaces |
| Customisation | Limited to desk or meeting room preferences | Fully customisable layouts and branding |
| Commitment | Short-term, flexible memberships | Longer-term agreements (1–3 years typical) |
| Cost Structure | Pay-per-seat model, often higher per person | Cost-efficient for larger teams |
| Culture | Community-driven, networking-focused | Company-specific, private team culture |
Why the Confusion?
The rise of terms like “managed spaces” can be attributed to market evolution. Initially, coworking spaces set the standard for flexible work solutions, offering low-commitment options for a wide range of users.
However, as larger companies started demanding more tailored options, providers evolved their offerings, leading to the birth of managed spaces.
Managed spaces bridge the gap between the complete autonomy of a traditional lease and the plug-and-play convenience of coworking. This overlap in their flexible approach creates confusion in terminology, especially as some coworking brands now also offer managed spaces.
Which Option Is Right for Your Business?
Choosing between coworking and managed spaces depends on several factors:
- Team Size
- For individuals or small teams, coworking provides cost-effective, flexible options.
- For medium to large teams, managed spaces offer scalability and dedicated resources.
- Need for Privacy
- Coworking thrives on openness, which may not suit industries like finance or law.
- Managed spaces provide the exclusivity required for sensitive operations.
- Customisation Needs
- Businesses with strong branding requirements benefit from the personalisation offered by managed spaces.
- Budget Considerations
- Coworking is ideal for small-scale operations with minimal setup costs.
- Managed spaces offer economies of scale for larger teams.
The Future of Office Solutions
The demand for flexible office solutions shows no signs of slowing, especially with hybrid work models becoming the norm. Managed spaces are particularly well-suited for companies seeking flexibility without compromising on privacy or customisation.
Meanwhile, coworking will continue to thrive among independent professionals and startups.
The real takeaway is that these models coexist to cater to diverse needs. For commercial real estate professionals and business leaders, understanding these distinctions is crucial to making informed decisions in a competitive marketplace.
While coworking and managed spaces share the DNA of flexibility, they address different pain points. Managed spaces are not just a synonym for coworking but a step up, offering bespoke solutions for larger, more established teams.
