"Managed office costs ₹9,000/seat. Traditional lease costs ₹45/sqft."
Founders compare these two numbers and think they've done their homework. They haven't — because the two numbers aren't measuring the same thing.
Here's what it actually looks like once every cost is on the same basis, not the headline rent card:
| Dimension | Traditional lease | Managed office |
|---|---|---|
| Headline price | ₹45/sqft/month (~₹9,000/seat at 200 sqft/seat) | ₹9,000–14,000/seat/month |
| Security deposit | 6–10 months' rent | 1–3 months' fee |
| Fit-out | ₹1,100–1,700/sqft one-time — yours to fund, yours to lose if you move | ₹0 — bundled in |
| Maintenance, housekeeping, security | Your responsibility, separate vendor contracts | Bundled in |
| Lock-in period | Typically 24–36 months | Typically 3–12 months, sometimes none |
| Capital tied up on day one, 15 seats | Roughly ₹35–55 lakh, earning nothing while it sits | Roughly ₹3–5 lakh |
| Flexibility to scale seats | Requires renegotiating or subletting | Usually built into the agreement |
| Control over space, branding, layout | Full | Limited, sometimes at extra cost |
| Amenities | You build and manage them | Shared — can get crowded at peak hours |
| Cost per seat at scale, 40+ seats, 3+ years | Often becomes cheaper once fit-out is amortised | Per-seat premium stays roughly constant |
The traditional lease isn't the "expensive" option and the managed office isn't the "cheap" one — they're priced for different situations.
A traditional lease makes more sense when you have visibility on headcount for three-plus years, want to control the space, and would rather deploy capital once than pay a recurring premium. A managed office makes more sense when your team size is still moving, you need to be operational in weeks not months, or you don't want ₹35–55 lakh sitting in a deposit and fit-out instead of in the business.
Most comparisons founders see are built by whoever is selling one of these two things. Run the actual numbers for your headcount and term before deciding — the table changes depending on both.