Welcome to the next era of the managed office

Managed offices are one of the fastest-growing real estate solutions. Sitting on its own between serviced offices and traditional leases, this category is now growing faster than ever, which we are excited about as our core belief is the importance and inevitability of the growth of the flexible workspace sector.

So why is this workspace solution popular? And, given the proposition has remained relatively static, what are we doing at The Instant Group to innovate it?

Serviced offices provide a superb option for companies that require maximum flexibility, wish to take space for shorter periods, do not require a dedicated space or branding or relish a shared atmosphere.

In many locations, there is good choice of providers with a breadth of quality of fit out and amenities to suit a company’s preferences and their budget. It is hard to see a business that wouldn’t benefit from serviced offices to some degree as a part of their real estate portfolio.

However, a typical managed office arrangement satisfies an occupier requirement for two years or more from circa 4,000 sq ft upwards.

A managed office provider secures a deal with a landlord and then delivers a ready-to-occupy space and will manage the space and hospitality for the client.

The key benefits of a managed office are its turnkey nature, fixed cost, option to customise and brand the space and speed of delivery – often delivered more quickly than an occupier could do themselves.

Time to evolve

With a number of providers on the market today, occupiers are presented with choice. It is now time for the managed product to evolve and for us to enter the next “era” of the managed office.

There are three key areas where we see an opportunity to drive greater value for occupiers.

Firstly, it is critical that with a short-term lease, the space is right-sized. There is nothing more wasteful on the balance sheet or harmful to a carbon footprint than an empty office.

By using data and analytics we can start to support businesses with their sizing decisions in a more scientific manner than the gut instinct and/or high-level demand plans of the past.

We are able to advise on the optimal size based on hundreds of thousands of data points that are collated by utilisation experts and take into consideration the company’s location, industry and function and the demographics of the teams using the space.

Higher user satisfaction

Secondly, if a space is designed based on inclusion and wellbeing science, you are guaranteed to get higher user satisfaction scores. We have engaged with leading businesses in the world to ensure that the baseline design, before we get to customisation, is based on these principles.

Whether the need is for differentiated floor tiling to support visually impaired employees or plant choices that maximise oxygen or art choices, decisions are based on best practice and science. Customer satisfaction results evidence whether space truly works for the people using it.

Lastly, managed offices can take a bigger toll on the environment than serviced offices (which are not re-fitted as often). The right supply chain rigour and use of the circular economy means our managed offices target 46% lower carbon emissions compared to RIBA 2030 standards. This is evidenced so our customers are in no doubt and can report easily on the carbon emission data of the office.

Baseline expectations of managed offices need to increase beyond cost certainty and speed. Our purpose at The Instant Group is to create a smarter working world for everyone. This means providing offices that are better for businesses, people and for the planet.