The cross section of quality and value in flexible managed office space

The concept of quality is the subject of a whole branch of philosophical debate, but for occupiers in flexible managed office spaces it’s often a case of knowing it when you see it. The flight to quality looks different at different price points, but the overarching desire from occupiers is for good fundamentals.  

For landlords looking to offer space, there is no one-size-fits-all approach and offerings should be tailored to suit a range of occupiers. There are however certain elements that landlords should take into account in order to put their space in the best possible position to be occupied. 

Educate, don’t just market

There’s still a level of confusion among landlords and occupiers around what “managed” space really means in the flexible office sector. Landlords moving into offering “managed” spaces should aim to demystify their offer – be transparent around costs, services, and responsibilities – so that potential occupiers know what they’re getting for their money. It builds trust and reduces friction in the sales process. 

Prioritise the essentials 

Landlords don’t need to replicate high-end space to attract occupiers at more cost-effective budget, especially if it means that corners are cut elsewhere. The focus should be on delivering well-presented offices and buildings that are clean, well-designed with good lighting, quality acoustic provisions, and decent air quality and mechanical and electrical systems. A simple but modern fit-out with neutral tones and quality dressing finishes goes a long way in making a space feel “premium” without the high costs. 

Flexibility still sells – but keep it smart 

Occupiers value flexibility in lease terms and configuration, but landlords should avoid over-engineering the offer. At the smaller end (sub-2,000 sq ft) of the market there’s a consistent desire for 12-month break clauses, however our data shows that the average lease term on the managed spaces we market is 36 months. Being brave with flexibility and working with the occupier to make the space work for them as they grow will reduce the likelihood of the break being served, increasing profitability significantly.  

Understand the needs of your target occupier 

Spaces that work well at lower price points are often aligned to specific occupier types, namely start-ups and scale-ups, so it would be a smart move to consider the factors that they value. They are usually less focused on the “wow factor”, instead valuing more straightforward and fundamental elements like location convenience, reliable tech infrastructure and shared amenities. For landlords looking to attract these occupiers, there are some practical steps that they can take with their fitouts. For example, using one floor in the building for a large boardroom and a lounge area would vastly increase the appeal to the businesses who value collaboration and occasional access to a large meeting room. This was an approach that proved successful at a building in Moorgate, achieving higher rents for four of the smaller occupiers as a result of the boardroom access. 

Build community and relationships without breaking the bank 

Thoughtful shared areas (like a well-equipped breakout space), regular touchpoints (like a monthly breakfast), and an engaged building manager can deliver a premium feel without premium costs and help to support a community culture – that personal touch will always shine through. 

Landlords who understand that quality can be delivered in thoughtful, practical ways – rather than purely through luxury finishes, are more likely to resonate with cost-conscious occupiers who are looking for value. Quality is less about cost than it is about care.