Serviced vs Managed Workspace

Scaling Up: Should You Move from Serviced Offices to Managed or Flex Lease Space?

4 min read

For many growing businesses, serviced offices offer the perfect launchpad – flexible, fully equipped, and low on commitment. But once your team starts nudging the 30–50 desk mark, a key question emerges:

Is it time to level up to a managed or flex lease space?

At Flex Office Solutions, we’ve guided dozens of scaleups through this transition and while there’s no one-size-fits-all answer, there are some clear pros, cons, and cost dynamics worth knowing before you make the jump.

The 3 Type’s of Office: What’s the Difference?

  • Serviced Offices: Fully furnished, ready-to-go private offices with short-term contracts, additional offices can be added along the term to help with scaling. All services, amenities and utilities from Wi-Fi to coffee to cleaning are included.
  • Managed Offices: A custom-built space just for your company, but operated by a provider. You get your own branding, layout, and amenities without committing to the liabilities of a traditional lease or the hassle of managing the various contracts needed to maintain your own office space.
  • Flex Lease: A longer-term agreement (typically 2–5 years) on a space which will generally need some fixtures, fittings and furnishing – from instructing contractors to build meeting rooms to procuring office furniture and milk/water orders, where you take on more responsibility but benefit from economies of scale.

The Scaling Challenge at 30–50 Desks

Let’s look at the numbers.

The average monthly cost of a serviced office desk in Central London is £600–£750 [1].
For 40 desks, that’s £24,000–£30,000/month – or up to £360,000/year.

Managed or flex lease offices for 3,000–5,000 sqft typically offer 20–30% savings compared to serviced space of the same size [2].

Our take?
Once you’re at 20 heads in an office space, it’s time to ask whether that spend is delivering the best long-term value, especially if your team is settled and growing predictably.

The Pros of Moving to Managed or Flex Lease Space

1. Cost Efficiency

You’re not paying for bundled services or communal extras you may not have used in the past. Instead, you can scale smartly and allocate budget where it matters.

2. Customised Branding & Culture

With your own space, you can shape the environment to reflect your values, brand, and team rituals from the meeting rooms to the breakout areas.

3. Space to Grow

Managed spaces typically offer more breathing room not just for desks, but for collaborative zones, quiet rooms, or future hires.

4. Professional Image

Moving into your own branded space signals stability, credibility, and ambition – especially important if you’re pitching for investment or hiring top-tier talent.

The Cons to Consider

1. Longer Commitment

Most managed or flex leases involve a minimum 12–36 month term – so you need confidence in your growth trajectory.

2. Upfront Fit-Out Costs

While some providers include fit-out in the deal, others require CapEx from you, usually around £40–£80 per sqft, depending on finish [3].

3. More Operational Input

You’re likely to take on tasks like managing your own cleaner, internet provider, or coffee machine, unless your landlord/provider offers a serviced arrangement.

Our Advice?

If your team size is relatively stable at 30+ people, and you’re forecasting growth over the next 2–3 years, a managed office is usually the sweet spot. You get the control and brand ownership of a leased space, without the rigid terms or heavy lifting of a traditional lease.

Use our Office Space Calculator to see what size and budget you’ll need for a team of 30–50, (generally add 20% more desks than required for offices with meeting rooms, or 40% more for managed spaces including meeting rooms and breakout areas). Or give us a call to run through layout and configurations.

Also check out our Area Guides to explore which London neighbourhoods offer the best value and vibe for your next HQ.

Ready to Scale?

Making the leap from Serviced/Coworking to Managed or Flex Lease Space can feel daunting, but it could also be the smartest move your business makes this year.

We’ll help you compare options, calculate costs, and find a space that grows with your team.

For more information on this and our FREE office search service – please contact Flex Office Solutions

[1] Flex Office Solutions Internal Market Data, Q1 2025
[2] Knight Frank Flex Market Update, 2024
[3] CBRE Fit-Out Cost Guide, 2024

What Flex Office Solutions can help with

Is your business in need of a flexible workspace that grows with you? Flex Office Solutions helps businesses of all kinds find and secure scalable office solutions. From private offices to self-contained floors or simply dedicated desks, we provide flexible agreements with transparent pricing to meet your needs. Let our dedicated team help you find your next perfect office space, so you can maintain your focus on what matters most, your business.

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Tony

Tony Beck

Tony, with 18 years' expertise in area management and director roles for top commercial agencies and serviced offices, brings valuable insights across surveying, property management, and commercial agency to ensure exceptional service in achieving clients' real estate goals.

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