While Work-From-Home (WFH) is a widely accepted policy under current circumstances, the initial frenzy witnessed during the beginning of the lockdown is soon dying especially in the technology sector.
There are also a set of people who are witnessing a gradual dip in productivity and hence want employees back in the office. Such firms are looking at taking up managed spaces for newer projects if they do not have space in their existing portfolio.
Finance and BFSI sectors are opting for managed spaces as an attempt to conserve capital and get flexibility. When BFSI companies move to new facilities, they sometimes need space for short-term before moving fully. Managed spaces come handy at the time.
For primary economic sectors including banking, life sciences and engineering, CAPEX and agility are of little or no importance so they will continue to opt for traditional office spaces.
Some will opt for a combination of traditional offices and enterprise models. In the future, large corporates will go for a combination of managed space, enterprise and traditional office. The choice of combination of spaces will depend on the business’ location, project time horizons, and business operations.
Many corporates are now working with small teams and small life cycle projects with highly driven outcomes. Such corporates need spaces for their teams and managed office spaces fit in very well.
All about managed office spaces
Agility is critical for corporates today—agility of capital, agility of location and agility of space. As corporates are looking at conserving capital, wanting flexibility with space needs, and also wanting to remain accessible to employees, a “managed space” comes as a solution.
A managed office space, also known as a serviced office is a fully outsourced workplace. Everything from renting property to designing, fit-outs and operations is taken care of by a third party. Such spaces offer space flexibility for dynamic businesses, options to lease out for a shorter period and become a cost-effective solution for several firms. They are offering corporates the much-needed agility amid the uncertainty.
Managed office spaces also work as a bridge space in most markets in India due to the undersupply of grade A offices. Most often they act as incubation spaces and help companies buy time while looking for a permanent set up.
At a time when the country is reeling under an economic slowdown and as businesses deal with cash crunch, such spaces offer an effective cost-saving solution. Thus, managed office spaces are gaining relevance in the time of the pandemic.
How is managed office space different from traditional offices?
As opposed to shared office spaces, managed offices are designed in accordance with a company’s requirements. Often managed by a co-working office firm or any other third-party provider, such offices have features and services as per the company’s standards and requirements.
Managed spaces also come as a convergence of landlord and financer providing a service. It is different from the conventional offices in a way that here developers sign a lease with the service provider and not with the client directly.
Daily facility management is done by the provider and the corporate need not appoint a separate agency or agencies. Some of the biggest advantages are maintaining corporate hygiene standards which are universal across the firm’s SOPs. Branding and image remain intact and data security concerns are addressed in a much robust manner as compared to a co-working setup.
How are managed spaces relevant post-COVID world?
With uncertainty in the market due to the pandemic, corporates are unsure about renewing leases and many are considering renegotiating terms of the lease. In such a scenario, managed spaces offer flexibility with short-term lease options.
There is also no need to reorganize and redesign spaces as those efforts are taken care of by a third party. There is thus greater flexibility offered.
As companies cautious of making a heavy capital investment, CAPEX-light models are finding more relevance. Hence, managed spaces are gaining much traction among such firms. An advantage that managed spaces offer is that there is no need to spend capital on creating permanent spaces in these uncertain times. Corporates can conserve that capital and invest it in the business.
While a co-working space also offers flexibility, a managed space is preferable as it also provides network security. It also provides employee hygiene and security. With the pandemic, employee security concerns are rising. In a managed space only your company employees are present as opposed to a co-working space that can be used by anyone; hence there is greater security and hygiene.
Such spaces also allow companies to have their own branding and customize space according to their needs and culture.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
