By now we all have heard the term ‘Managed office space’ and its growth all across the globe. In this blog, we will learn about managed office space and its effect on Indian businesses. But before understanding how this is impacting the Indian businesses workspace, let’s first understand what is ‘Managed office space’?
What is Managed Office Space?
In simple terms, Managed office spaces are like the hassle-free, ready-to-go workspaces of the business world. They come fully furnished and equipped, with added perks like reception services, cleaning, and IT support. They’re a favourite for startups and businesses who want a convenient, no-fuss office setup, leaving them to focus on what they do best.
According to Colliers report, the leasing of managed office space in India surged by 58% year-on-year in the second quarter of 2023. Another report from YourStory, India has over 1,800 coworking spaces, up 70% from last year. Inc42 predicts that India’s coworking space market will touch $1 billion by 2024.
CBRE reports that the market penetration of managed office space in India is currently at 3% of total office stock, but this is expected to grow to 10% by 2025.
The Changing Landscape of Indian Workplaces
To understand the rise of managed office spaces in India, let’s first understand why this shift is happening, what’s the need behind this. And for this, let’s compare the traditional and modern workspaces.
Traditional vs. Modern Workspaces
|Aspect||Traditional Workspaces||Modern Workspaces|
|Office Layout||Cubicles, private offices, and fixed layouts.||Open floor plans, shared workstations, and flexible configurations.|
|Work Hours||Fixed 9-5 schedules often enforced.||Flexible work hours and remote work options.|
|Technology||Limited tech integration, paper-heavy processes.||High-tech infrastructure, cloud-based tools, and digital workflows.|
|Environment||More formal and often hierarchical.||Casual, relaxed, and often flat hierarchies.|
|Amenities||Basic facilities; limited emphasis on employee well-being.||On-site gyms, cafes, relaxation areas, and wellness programs.|
|Flexibility||Limited flexibility in work hours and location.||Emphasis on remote work, hot-desking, and adaptable work schedules.|
|Collaboration||Limited cross-team collaboration.||Cross-functional teams and collaborative spaces are encouraged.|
|Cost||High overhead costs, including rent and utilities.||Lower operating costs, often with shared amenities.|
|Sustainability||Often less environmentally conscious.||Sustainable design, energy-efficient systems, and eco-friendly practices.|
These differences show how workspaces have changed over time. Traditional offices were more formal and fixed, while modern offices in India are flexible and focused on teamwork and keeping employees happy. It’s all about adapting to the way people work today.
The Need for Managed Offices
Businesses today require workspace solutions that offer flexibility, scalability, and cost-effectiveness. Why are businesses warming up to managed offices? Well, it’s simple – they tick a lot of boxes. Here are a few reasons why managed offices have become a crucial asset for businesses:
Businesses today need to be nimble. Managed workspaces allow you to expand or downsize swiftly. That’s gold for startups and growing companies.
2. Reduced Overheads:
Traditional office spaces can drain your resources. With managed offices, someone else takes care of the nitty-gritty like utilities, maintenance, and admin work, saving you time and money.
3. Access to Premium Amenities:
Managed offices often come loaded with goodies like lightning-fast internet, sleek meeting rooms, and fully stocked kitchens. These perks make your workspace an basis of productivity.
4. Cost Predictability:
Managed offices often come with fixed monthly costs, making budgeting and financial planning more straightforward. This predictability helps businesses avoid unexpected expenses associated with traditional leases.
5. Enhanced Brand Image:
Managed offices allow businesses to design and customize their workspace to reflect their brand identity. This branded environment not only boosts employee morale but also leaves a strong impression on clients, partners, and visitors.
What are the Benefits of Managed Offices?
Now that you know what managed offices are, let’s take a step forward towards understanding them in a better way by taking a look at the benefits.
Managed offices offer the kind of flexibility that traditional office leases can only dream of. Life is unpredictable, and so is business. Managed offices get that.
- Scale Up or Down: Need to expand your team quickly to seize a new opportunity? Managed offices can accommodate that without breaking a sweat. On the flip side, if you find yourself needing to scale down temporarily due to changing circumstances, it’s a breeze with these spaces.
- No Long-Term Commitment: Say goodbye to those rigid, multi-year leases. With managed offices, you can enjoy flexibility without being tied down.
- Adapt to Changing Needs: In a world where change is constant, these offices are your trusty sidekick, adjusting to your workspace requirements on the fly.
2. Value for money:
Traditional leases often require you to fork out a small fortune upfront for setup. Managed offices? That’s not the case here!
- Pay for What You Use: Forget about sinking big bucks into setting up an office. Managed offices follow an à la carte model where you pay only for the services and space you actually use.
- No Hidden Costs: With traditional leases, there are often surprise costs lurking around the corner. Managed offices keep things transparent, so you know what to expect.
- Budget-Friendly: By eliminating the need for hefty upfront investments, managed offices are budget-friendly and help you manage your finances better.
- Focus on Core Business: With cost-efficiency comes the luxury of focusing on what truly matters – your core business activities.
3. Turnkey Solution:
Setting up and maintaining an office can be time-consuming and distracting. Managed offices step in to take all the headaches.
- Ready to Go: Walk into a managed office, and everything is ready to roll, from furniture to high-speed internet. No need to sweat the small stuff.
- No Maintenance Worries: The provider takes care of all the nitty-gritty, so you can concentrate on your work, not on fixing the printer.
- Time-Saver: Managing your own office space can be time-consuming. With a turnkey solution, you save precious hours and can put them to more productive use.
- Professional Environment: A well-maintained, professional workspace can make a world of difference in your team’s productivity and morale.
4. Prime Locations:
The location of managed offices would often make any real estate enthusiast jealous even without breaking the bank.
- Prestigious Addresses: Managed offices often come with addresses in prime business districts, giving your business a prestigious image.
- Networking Opportunities: Being in a prime location can open doors to valuable networking opportunities with neighbouring businesses.
- Easy Access: Clients and partners can find you easily when you’re situated in a high-profile location.
- Boosted Reputation: Your location can enhance your business’s reputation, making it more attractive to potential clients and employees.
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Types of Managed Office Spaces
There are 3 types of managed office spaces, namely Coworking spaces, Serviced offices, and Virtual offices.
1. Co-Working Spaces:
Co-working spaces are shared work environments where individuals and businesses can rent desks or workspaces in a communal setting. Coworking spaces typically offer a variety of amenities, such as high-speed internet, printing and copying services, and conference rooms. Co-working spaces are a popular option for startups, freelancers, and remote workers, as they provide a flexible and collaborative atmosphere for professionals.
2. Serviced Offices:
Serviced offices are fully furnished and equipped offices that are rented to businesses on a short-term or long-term basis. Serviced offices typically offer a variety of services, such as reception services, administrative support, and IT support. Serviced offices are a good option for businesses that need a professional workspace but do not want to commit to a long-term lease.
3. Virtual Offices:
Virtual offices are essentially business addresses that allow companies to project a professional image, all without the necessity of leasing traditional office space. These virtual office solutions often encompass a range of amenities, including mail management, call routing, and voicemail services. Virtual offices serve as an attractive choice for fledgling businesses or those with decentralized, remote teams.
Challenges of Managed Office Spaces
1. Limited Privacy:
- Open Work Environments: Co-working spaces and some serviced offices often have open floor plans, which can lead to a lack of privacy for sensitive discussions.
- Noise and Distractions: In shared workspaces, noise and distractions from other occupants can hinder concentration and productivity.
2. Limited Control:
- Design Limitations: Tenants might have limited control over the layout and design of their workspace, which can affect brand identity and functionality.
- Dependency on Service Providers: In serviced offices, businesses rely on the service provider for essential support, which may lead to potential issues if services are inconsistent.
3. Limited Ownership and Equity:
- No Asset Ownership: In managed spaces, businesses do not own the real estate, limiting the ability to build equity in property.
- Limited Growth Space: As businesses expand, they may outgrow their managed office space, requiring them to find alternative accommodations to accommodate growth.
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Everything comes with its pros and cons; while there are plenty of benefits, there are a few drawbacks as well. It’s time for you to take a new step and look at the bigger and brighter picture. It’s time for you to join the ongoing trend and switch to managed office spaces.
To find the perfect managed office space hassle-free, connect with us! We are Styleworks and we have tailored solutions to provide you a perfect managed office service. With a strong presence across the country, Styleworks offers over 100 locations and a network of more than 2000 spaces.
Contact us now!