Home / Guides / Managed office or your own office? When it makes sense to move out (2026)

Managed office or your own office: when should you move out?

Short answer: A managed office is usually the better choice under about 80 to 100 seats, or when you can't commit beyond 2 to 3 years. Above that size, with a 5-year plan, leasing your own floor and fitting it out usually costs less per seat. The exact break-even depends on rent, fit-out cost and how long you stay.

What you pay for in each

	Managed office	Your own office
Upfront cash	Deposit only (about 2 to 3 months)	Fit-out, furniture and IT, plus a rent deposit (often 6 to 10 months)
Time to move in	Days to weeks	Typically 3 to 6 months for design, approvals and build
Monthly cost	One per-seat fee covering rent, fit-out, maintenance and utilities	Rent, common area maintenance, power, housekeeping and security, each paid separately
Lock-in	Often 12 to 36 months	Commonly 3 years, on a longer lease
Brand and layout control	Limited	Full

A simple break-even method

1. Managed cost per year = seats × monthly seat price × 12.
2. Own office cost per year = (rent + maintenance + running costs) × 12 + (fit-out cost ÷ years you will stay).
3. Compare the two over the years you expect to stay.

Worked example: 100 seats, Gurgaon

All figures are example inputs. Replace them with your own quotes.

• Managed office at ₹14,000 per seat: ₹1.68 crore a year.
• Own office: about 10,000 sq ft carpet area (around 100 sq ft per seat), rent plus maintenance and running costs at an example ₹160 per sq ft a month = ₹1.92 crore a year, plus fit-out at an example ₹3,000 per sq ft = ₹3 crore spread over 5 years = ₹0.6 crore a year. Total ₹2.52 crore a year.

In this example the managed office is cheaper. The result flips when rent is lower (Udyog Vihar rather than Cyber City), when you stay longer than 5 years, or when the managed seat price is higher. Many 150+ seat teams find their own office cheaper by year 4 or 5.

When a managed office wins

• You're growing fast or unsure of headcount.
• You need to move in within weeks.
• You don't want to tie up cash in fit-out.
• You're testing a new city.

When your own office wins

• You have 100+ seats and a stable plan for 5+ years.
• Your brand, security or lab needs are specific.
• You want to own the furniture and IT you pay for.

Tip: get both quotes at the same time

Ask a managed operator for a 36-month quote. At the same time, ask a fit-out firm for a design-and-build estimate on a comparable bare-shell floor. Comparing real numbers takes about two weeks and can save crores over a lease.

FAQ

Is a managed office cheaper than leasing? For small and mid-size teams on short horizons, usually yes. For 100+ seats over 5+ years, leasing and fitting out your own office is often cheaper.

How long does an office fit-out take? Typically 3 to 6 months from design to move-in, depending on size and approvals.

Can we move from a managed office to our own later? Yes. Plan the move about 6 to 9 months before your managed office term ends, and check the exit notice period.

Last checked 31 Oct 2026.