The document compares managed offices and conventional offices. Managed offices offer turnkey solutions through an operator model, allowing for flexibility, scalability, and shared amenities. However, they have less privacy and branding control than conventional offices. Conventional offices have more space customization but involve longer commitments and responsibilities like facilities management. The document also outlines pros and cons, costs, flexibilities, and sample corporate clients of managed offices in Pune.
The document compares managed offices and conventional offices. Managed offices offer turnkey solutions through an operator model, allowing for flexibility, scalability, and shared amenities. However, they have less privacy and branding control than conventional offices. Conventional offices have more space customization but involve longer commitments and responsibilities like facilities management. The document also outlines pros and cons, costs, flexibilities, and sample corporate clients of managed offices in Pune.
The document compares managed offices and conventional offices. Managed offices offer turnkey solutions through an operator model, allowing for flexibility, scalability, and shared amenities. However, they have less privacy and branding control than conventional offices. Conventional offices have more space customization but involve longer commitments and responsibilities like facilities management. The document also outlines pros and cons, costs, flexibilities, and sample corporate clients of managed offices in Pune.
The document compares managed offices and conventional offices. Managed offices offer turnkey solutions through an operator model, allowing for flexibility, scalability, and shared amenities. However, they have less privacy and branding control than conventional offices. Conventional offices have more space customization but involve longer commitments and responsibilities like facilities management. The document also outlines pros and cons, costs, flexibilities, and sample corporate clients of managed offices in Pune.
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MANAGED OFFICE
VS CONVENTIONAL OFFICE Understanding of Coworking / Managed Office
Dedicated & Fully Managed Expense at Scale Rise of Enterprise model / Operator Business model “Office as a service” allows scalability Varied Occupiers Dependency on Operator Ability to scale up/down Greater agility to business occupancy quickly Operator profile change Frequent layout Ease of entry & exit Dilution of Corporate Leverage pricing due to depth modifications (turnkey solution) identity of provision Service failure leads to staff Exposure to external Customer service Opportunities for tie-up with churn innovation standards may vary provider Exposure to cost inflation Accommodation of Dependency on Operators Rapid expansion in new (services & space) Corporate Supply Chain for space & service markets
Alternative to Corporate Managed but effective space
HQ
More productive space
S Strengths W Weaknesses O Opportunities T Threats Conventional Vs Managed Office – Pros & Cons CONVENTIONAL OFFICE MANAGED OFFICE
PROS CONS PROS CONS
Control over environment × Dealing with multiple vendors can be a Hassle free one stop Enterprise Solution with × There could be limitations on Branding More space & privacy hassle completely customized & private office × Shared bandwidth & UPS (dedicated can be Familiar working structure & expectations × More rigid oversight & management Modern ergonomic design & infra availed at an additional cost) Freedom of performing activities as per × Harder to adapt changes in real time Commercial terms flexibility × Poaching of employees Company’s culture situations Ability to scale up/down as per Business × Lack of control on neighboring Occupiers Unrestricted ingress & egress to office × Long term commitments needs premises × Less networking opportunities Operators can acquire more space in High scope of Brand visibility × Office / facility management tasks same/new building to cater to future Presence of similar Occupier profile in the × Obtaining licenses & permits expansion vicinity × Under utilized or unused space Facility of IT & Admin services Grade A infra & exclusivity × Restricted & monotonous environment Reception & Concierge Services × Wastage of resources Loaded with common area amenities Networking opportunities with excellent work environment Collaborative community events 24 x 7 in house facilities & support Shorter turn around time for modifications as & when needed Hub & Spoke model Conventional Vs Managed Office Particulars Conventional Office Managed Office / Coworking Flexibility in Tenure & Lock-in 60 months Lease; 36 to 60 months Lock-in 36 months Lease; 12 to 24 months Lock-in
Flexibility to expand / downsize Limited flexibility due to longer lock-in Operators provide maximum flexibility to expand/downsize
Staggered Space Take-up Not possible Possible
Staggered Rent Commencement Not possible Possible Stamp Duty 1% of annual average rent + 1% of Security Deposit amount NA Registration Charges 50% of the stamp duty amount NA Refundable Security Deposit Ranges from 6 – 12 months’ rentals Ranges from 3 – 6 months’ rentals
Payouts Multiple payouts – Rent, CAM, Opex, etc. Single payment to the Operator Escalation 5% every year or 15% every 3 years 5% to 7% every year Parking available on additional cost as per market norm of 1:750 – Parking available on additional cost as per the tenant needs and Parking 1:1000 sq. ft. of chargeable space. the availability. Typically INR 1,500 – 2,500 per sq. ft. on chargeable area, depending Tenant Improvement Cost NA on the type of fit-outs. Rent Free Period If provided, ranges from 30 days – 90 days. Varies based on deal structured
Café, recreational space, collab spaces, etc. to be built within the office All amenities are part of common areas which helps reduce the Amenities which adds up to the chargeable area chargeable area and maintenance issues for tenant Corporates Operating out of Managed Offices in Pune
15,000 Sqft. 15,000 Sqft. 20,000 Sqft. 14,000 Sqft. 10,000 Sqft. 10,000 Sqft. Comparison & Recommendation A B C D Self Build by New Furniture by 2nd Generation fit-out Managed Office Tenant Landlord
Shell space provided by New fit-out with opex, capex &
Description 2nd Generation Fitouts with Fully managed office with Landlord. Fit-outs to be done operation cost done by the opex, capex & operation cost opex, capex & operation cost by Client/Tenant. landlord
One-Time Investment (High medium Low) or numbers if High Low Medium Low available)
Run Rate (Cost)
(High medium Low) or numbers if Medium Low High Medium available)
Long Term Commitment &
3 - 5 Years 2 - 3 Years 5 - 7 Years 1 - 3 Years Flexibility
Re-instatement cost High Low Low Low
Customization Flexible Moderate Flexible Flexible
Availability of Options Ample Limited Moderate Ample
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