Corporates prefer Managed Office Spaces over Coworking!

By Published On: April 30th, 2024Categories: Managed Office6.7 min read
corporates now prefer managed office spaces

Corporates prefer Managed Office Spaces over Coworking Spaces: A study of the trend

Table of Contents

  1. Recognizing Coworking Spaces
  2. The Growth of Office Space Management
  3. Elements Influencing the Predilection for Managed Office Facilities
  4. Consequences for Coworking Facilities
  5. Technology’s Place in Workspace Management
  6. Examining the Effects on Finances
  7. Meeting the Needs for Security and Compliance
  8. Accepting Hybrid Work Structures
  9. Getting Used to Post-Pandemic Workspace Needs
  10. Environmental Responsibility and Sustainability
  11. Fostering Innovation and Cooperation



The dynamics of workplace spaces have changed significantly in the last few years. With its flexibility and sense of community, coworking spaces were previously thought to be a revolution in the typical office arrangement. A recent trend, however, suggests that corporates prefer managed office spaces over coworking facilities. The reasons for this tendency and its consequences for the future of workspace management have come under scrutiny due to this shift in preference.

Recognizing coworking spaces

The increasing need for flexible work environments led to the rise in popularity of coworking spaces, which are defined by open floor plans and shared amenities. These locations offered freelancers, startups, and even existing businesses the chance to work in a creative and collaborative environment, making them an alluring substitute for traditional offices. Coworking spaces were popular because they encouraged innovation, facilitated networking, and offered affordable solutions for companies of all kinds.

The growth of office space management

On the other hand, managed office spaces are becoming a very attractive choice for corporates looking for a more regulated and personalized setting. Professional management businesses oversee these facilities, which offer fully furnished and serviced offices tailored to the unique requirements of larger organizations. The trend towards managed office spaces is a reflection of the need for more corporate environments, brand identification, and privacy.

Elements influencing the predilection for managed office facilities

Corporates increasingly prefer managed office spaces due to a number of considerations. First and foremost, considerations such as privacy and brand identity are important when making decisions. Managed office offices, as opposed to coworking spaces, give businesses the chance to create and preserve their unique company culture and brand identity. This is especially crucial for companies looking to establish a recognizable, professional brand in their workplace.

Furthermore, corporations now require scalable and customized solutions more than ever. Managed office spaces give you the freedom to customize the amenities, layout, and design to meet your company’s unique needs. Due to their intended tenant diversity and range of needs, coworking spaces typically offer less customization than other types of spaces.

Corporates are also giving the calibre of the amenities and services offered in the workplace more weight. Modern facilities like concierge services, top-notch infrastructure, and cutting-edge technology are hallmarks of managed office spaces. These elements meet the requirements of corporate renters by creating a more upscale and polished work atmosphere.

Consequences for coworking facilities

There are concerns about coworking spaces’ survival due to the trend towards managed office spaces. Although coworking spaces still serve startups, small enterprises, and independent contractors, the declining interest from larger corporations may have an effect on the total occupancy and long-term viability of these spaces. As a result, in order to stay competitive in the changing workspace market, coworking operators might need to review their business plans and take into account new approaches.

Coworking spaces have the chance to concentrate their efforts on specialized offerings and specific markets in spite of the difficulties. Coworking spaces can set themselves apart and adjust to the shifting needs of the market by focusing on particular businesses or offering distinctive value propositions, including industry-specific amenities or specialized networking events.

Technology’s place in workspace management

The way workplace management will be managed in the future will be greatly influenced by technology. Modern technology is being used by coworking spaces and managed office spaces to improve the overall experience of their tenants. Modern workspaces are becoming more efficient and convenient due to technology, which is found in everything from smart building systems and integrated security solutions to digital platforms for meeting room reservations and utility management.

Furthermore, workspace managers can learn a great deal about tenant preferences, resource allocation, and space utilization by integrating Internet of Things (IoT) devices with data analytics. By optimizing workplace design and functionality and making well-informed decisions, this data-driven strategy improves the entire tenant experience.

Examining the effects on finances

Corporates choose managed office spaces versus coworking spaces for a variety of reasons, one of which is financial. Corporates are reevaluating their workspace strategy due to long-term financial considerations, even if coworking spaces initially provided affordable options with flexible lease periods and shared facilities. Corporates can negotiate tailored lease arrangements for managed office spaces, giving them more control over expenses and budgetary allocation. Corporates find managed office spaces appealing due to the possibility of long-term savings through dedicated infrastructure and effective space utilization.

Meeting the needs for security and compliance

For corporations, security and compliance are critical factors, particularly for those in regulated industries. To satisfy the strict needs of corporate tenants, managed office spaces provide improved security measures, access control systems, and compliance support. This emphasis on compliance and security fits perfectly with larger organizations’ risk management plans, offering comfort and peace of mind in a monitored and secure work environment.

Accepting hybrid work structures

Corporates are increasingly adopting hybrid work models, which strike a balance between remote work and centralized office locations. This is reflected in the shift towards managed office spaces. Because managed office spaces offer both the infrastructure and support needed for productive in-person meetings as well as the flexibility to accommodate occasional remote work needs, they make it easier to integrate hybrid work models. This flexibility is in line with how people’s preferences for their jobs are changing and how corporate work cultures are developing.

Getting used to post-pandemic workspace needs

The worldwide health crisis has had a notable impact on the factors corporates take into account when selecting office solutions. Managed office spaces have proven to be resilient in their response to the post-pandemic workspace demands, incorporating stricter health and safety regulations, customizable workstation arrangements, and improved cleaning procedures. These actions have given corporates looking for workplace solutions that put their employees’ well-being first. Corporates navigating the uncertainty of the contemporary business landscape are drawn to managed office spaces because of their capacity to quickly react to the changing demands of the economy.

Environmental responsibility and sustainability

Incorporating sustainability and environmental responsibility into corporate decision-making has become essential. In order to meet the sustainability objectives of corporations, managed office spaces are progressively integrating eco-friendly procedures, energy-efficient technologies, and sustainable architectural components. This dedication to environmental stewardship is in line with corporate social responsibility programs of businesses, which makes managed office spaces an appealing option for ethical workspace.

Fostering innovation and cooperation

Although managed office spaces provide corporates with a more regulated setting, they also understand how important it is to encourage creativity and teamwork in the workplace. In order to give corporate tenants a chance to interact with other like-minded individuals and colleagues in the sector, managed office operators are incorporating networking events, innovation centers, and collaboration areas. The goal of these programs is to create a middle ground between coworking spaces’ communal atmosphere and managed office spaces’ exclusivity and seclusion.


The evolving scenario of corporates preferring managed office spaces over coworking spaces reflect a shift in the priorities and requirements of modern businesses. The desire for privacy, brand identity, customization, and premium services has driven this trend, prompting a reevaluation of the traditional workspace models. While coworking spaces continue to serve a vital role in the workspace ecosystem, the emergence of managed office spaces signifies a broader transformation in the way organizations perceive and utilize office environments. As technology continues to redefine the boundaries of workspace management, it is essential for workspace operators to adapt and innovate in order to meet the evolving needs of corporate tenants and maintain a competitive edge in the market. For more blogs like these about why corporates prefer managed office spaces or similar topics, you can visit our website at BHIVE.

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