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According to new research from workspace provider Kitt, a striking 92% of landlords, agents, operators, and advisers expect demand for managed offices to grow over the next two to three years. The findings, published in The New Office Normal report, signal a major shift in how office space is leased, managed, and monetized.
“The shift isn’t coming. It’s already here. And we believe it’s the most important evolution in commercial real estate today,” write Kitt co-founders Steve Coulson and Lucy Minton in the report.
Landlords are increasingly turning to managed space to combat rising vacancy levels and attract a broader occupier base. In fact, reducing voids was cited as the top motivator for embracing the model, with 92% of owners and agents identifying it as a key benefit. Another 89% highlighted the ability to access a more diverse pool of tenants as a strategic advantage.
Managed offices—self-contained, fully fitted, and service-inclusive—offer tenants speed, simplicity, and customizability. The average move-in timeline can drop from up to 18 months under a traditional lease to just eight weeks for managed spaces. This agility appeals not only to startups, but also to multinationals and “flex-native” companies that have never signed a traditional lease.
“Cash is precious, so there’s an attraction to taking a fully fitted space where you’re not having to spend that capex,” said Cal Lee, Global Head of Workthere.
Still, scaling managed offices isn’t without challenges. The sector lacks the standardization of traditional leases, particularly around valuation—which 62% of respondents cited as the biggest hurdle. Legal complexity, lack of benchmark data, and post-sale continuity concerns also remain barriers to wider adoption.
Yet despite these growing pains, momentum is clear. Landlords and operators are expanding into larger buildings, exploring regional markets, and building full-spectrum portfolios that integrate coworking, managed, and leased space. The goal is long-term tenant retention and more predictable returns.
“Managed offices offer a menu of services—and that’s something I’ve found occupiers really like,” said Evelyn Heavens, Senior Director at CBRE UK.
In this fast-evolving landscape, operational excellence and customer experience are emerging as new competitive edges. With the right service delivery and legal frameworks in place, managed offices could redefine not just how space is leased—but how it’s valued.
