Continuing the exploration of coworking evolutionary classification in an effort to map the sector into easily-distinguishable tranches. In this piece we look at classifying managed offices.

Managed office space species are easier to classify because the principles are simpler, since you, as the tenant, decide how to build the space. The family can be described as:

“A fixed-size, single-tenant office space, secured from a landlord on the basis of a traditional lease agreement (usually short-form) measured in years, which is then designed, built, operated and maintained by an office operator company on the tenant’s behalf as part of an over-arching management agreement that also spreads any up-front costs across the duration of the term agreed through a single monthly premium.”

So far so good – one client, one landlord, one space, one operator, one management agreement, build the space, spread the costs.

But are there different species of managed offices?

Turns out yes – decided by two distinctly unique characteristics:

1) Who signs the lease with the landlord?

2) Is the bundle of inclusive services fixed or negotiable?

Managed office types

So the Managed Office family has three species:

1) Operator-leased managed

This is where the managed office operator signs a lease with the landlord. You then sign a mirroring lease with the managed office operator. A single monthly fee then covers all set-up, fit-out, operational and management costs – with one-off costs spread evenly (amortised) across the length of the agreement.

2) Client-leased managed

This is where you sign a lease with the landlord. You then signs a service agreement with the managed office operator to manage the space on their behalf. A single monthly fee then covers all set-up, fit-out, operational and management costs – with one-off costs spread evenly (amortised) across the length of the agreement.

3) Client-leased managed ‘lite’

This is where you sign a lease with the landlord. You then signs a service agreement with the managed office operator to manage the space on their behalf. You have a “pick-and-mix” choice of which costs and services are managed on their behalf and which you will be responsible for themselves.

Unfortunately classifying serviced office species is a lot more complicated. This is because those environments are pre-built and the range of deliverable services is already fixed. The end outcomes define the species.

So future segments will focus on finding a complete list of characteristics onto which we can map the coworking landscape better.

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