Coworking spaces and managed office spaces have seen unprecedented growth lately. They both outperform conventional office spaces for the right reasons. This is because they are cheaper and more convenient. However, there still exist some misconceptions about the terms. This blog post aims to contrast between coworking spaces and managed office spaces.
What are Coworking Spaces?
Actually, coworking space can be interpreted in simpler terms as a place where small sized companies share the same reserved office space with other small companies. This is through having common facilities like cafeterias, recreational rooms among others. This in turn cuts down the costs and encourages conducive startup environments.
What is a Managed Office Space?
A managed office space is an office space [Interview Office Spaces for Rent in Dubai] leased to one company which is entirely managed and provided by someone else. This person handles all the administrative worries. This makes it possible for workers to isolate themselves within it and mould it to the specific requirements of their organization.
Differences Between Coworking and Managed Spaces
Given below is a list of major differences between coworking and managed spaces.
Privacy
One of the major differences between coworking and managed space is privacy. In coworking spaces, privacy is limited due to the fact that they are shared with other people. But in managed offices you have much more space that you can keep very private because it belongs only to you and your employees or partners. This will be very useful particularly if your work involves some secret aspects.
Lease Flexibility
Usually, in coworking spaces, the lease period tends to be more flexible compared to a managed office space [Private Office Space for Rent in Dubai]. This typically takes 6-12 months at a coworking space, and you can easily get out once the contract is done with. But in a managed office space there is less lease flexibility with the lock-in period being longer, ranging between 24 to 36 months.
Customisation
Customization is one of the major differences between coworking and managed spaces. In a coworking office, all that you get are pre-existing infrastructure and facilities e.g., tables, chairs, internet connection, pantry, all of which leave very little space for personalization. However, in the case of managed space you can have the space customized by the third-party provider to meet your business needs. The majority of managed spaces are also plug and play offices with infrastructure companies looking after housekeeping, repairs, maintenance among other services; for example security etc .
Costs
The upfront costs of a managed office space [Office Spaces for Rent in Business Bay, Dubai] and a coworking space are the same per sitting position. However, the difference lies in the fact that you must pay a security deposit of 4 to 6 months rent when leasing out managed office space which can be challenging especially if your cash flow is low. On the other hand, with coworking spaces there is no heavy security deposits requirement and they are therefore cheaper than managed offices.
Brand perception
Managed offices have a better ability than coworking offices to highlight brand perception. Unlike coworking space, you can match a managed office to your corporate image because there is an allowance for change. This is because you can’t come up with your own brand in a coworking space as you are overshadowed by other firms.
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For freelancers and small teams, coworking spaces offer shared workspaces with flexible settings that include things like desks, Wi-Fi, and communal areas whereas managed office spaces provide customised offices for a company such as private offices where the required infrastructure and management are in place hence applicable in large organizations aiming at expansion.
