Scaling from 10 to 50 people used to mean a big office lease and a bigger leap of faith. In 2025 that same move can quietly damage your runway and your team focus.
The real question is not where your people sit. It is how your workspace helps or hurts growth.
Why does the 20 to 50 person stage change everything?
Once a team passes about 20 people, the cracks in both extremes start to show. Traditional leases tie you into multi-year commitments with fit out, furniture, and service costs that can easily hit six figures upfront.
That capital is then stuck in walls instead of in product, hiring, or customer growth.
At the same time, pure coworking starts to feel strained. Founders tell us that once they hit 25 to 40 people, issues stack up fast.
Noise, lack of privacy for hiring or board meetings, security worries, and the sense that their culture is diluted inside someone else’s space. Energy that should go into scaling ends up going into workarounds.
Market data backs up this shift. Research compiled by the Archieapp team shows that 59% of companies planning to expand now prefer coworking or flexible workspace over a traditional office lease.
The same report finds corporate teams already make up 27.6% of the coworking market. This is no longer a niche startup move.
The Instant Group research, reported by Sarah OBeirne for FMJ, found that 78% of UK landlords have seen rising requests for flexible space, with demand set to reach 50 million square feet by 2025.
Landlords are following the money because growth companies are clearly voting for flexibility.
For scale-ups at 20 to 50 people, this usually means a new mindset:
- Space is treated as a strategic asset, not background overhead
- Flexibility and exit options matter more than headline rent
- Privacy, security, and brand control become non-negotiable
- The office must support hybrid patterns and quick team reconfiguration
- Capital preservation is valued over owning a shiny fit out
As more founders recognise this inflection point, managed offices start to emerge as the natural middle ground between long leases and open coworking.
Why are managed offices becoming the scale up sweet spot?
Managed offices give growing teams their own front door without the dead weight of a traditional lease. You typically commit for 1 to 3 years.
The operator handles fit out, furniture and services. You get branding, private meeting rooms and security that pure coworking rarely offers.
The financial profile is what really changes the game. A 2024 review by the Archieapp research team found firms using managed space can cut real estate costs by up to 30% and trim operational overheads by around 20% in year one.
Aura Innovation’s workplace analysts report average savings of about £8,500 per employee each year when companies switch to flexible arrangements which is a material boost to runway for a 40 or 80 person team.
Instead of wiring six figures into fit out, cabling and furniture, a managed office spreads those costs into an all-in monthly fee.
Hubble’s editorial team and CBRE’s corporate real estate researchers both highlight how this keeps cash on the balance sheet and avoids large lease liabilities that can alarm investors during due diligence.
For scale-ups riding unpredictable funding cycles this flexibility matters. You can scale the space up or down at renewal without ripping up a five-year contract.
That is why the next step is not just choosing managed versus flexible but working out which model fits each stage of your headcount journey.
How should you time the shift from flexible to managed space?
For teams under 20, shared coworking space usually wins. Month to month memberships keep risk low while you find your working rhythm and hiring pattern.
Optix data shows small teams lean on hot desks and small private rooms, which is ideal when roles and in-office days are still changing and every pound of runway matters.
Once you hit roughly 20 to 100 people, the equation flips toward managed offices. You now need your own entrance, consistent meeting space and a setting that reflects your brand.
In London, average flexible contracts have stretched to around 22 months, a sign that growing teams are treating these spaces as a stable HQ rather than a stopgap.
A simple rule of thumb looks like this:
- Under 20 people choose flexible coworking with short commitments and shared amenities
- 20 to 100 people choose managed space that gives control and privacy without long leases
- 100 plus people explore enterprise flex deals that trade longer terms for sharp pricing and custom layouts
Industry studies show that larger hubs are healthier businesses overall, often running at around 75% occupancy while many small sites struggle to stay full.
Providers naturally prioritise bigger, committed clients, so moving into a right-sized managed or enterprise space at the right moment locks in better service and pricing.
How ADAPT helps you nail the 20-50 person office jump
As this article shows, the danger zone isn’t just “no office” vs “big office” – it’s choosing the wrong model when you move from 10-20 people toward 50 and beyond.
Long leases can trap precious cash. Staying in noisy coworking can drain focus and dilute culture. ADAPT exists to guide that shift so your next move feels like a growth decision, not a gamble.
Instead of you trawling dozens of providers, ADAPT maps your headcount plans, budget, culture and hybrid pattern, then quickly narrows the market to the right type of space for your stage:
- Coworking that still works for smaller, fluid teams
- Managed offices that give you your own front door, privacy and branding
- Larger, flexible solutions when you’re 80-100+ and need a true HQ
Because ADAPT is plugged into operators, landlords and off-market options, they can show you choices you won’t see on public portals, explain the trade-offs in plain English, and help you avoid spending six figures on a fit out you don’t need.
The team stays with you through viewings, negotiation and move-in so the process is fast, calm and aligned with your runway.
Across hundreds of searches, ADAPT has seen that when companies time the switch from coworking to managed space well, they not only cut waste – they also see better hiring, stronger culture and happier leadership teams who can focus on product, not plumbing.
“The risk for growing teams isn’t having no office – it’s locking into the wrong one,” says Chris Meredith, ADAPT CEO & Founder. “Our job is to translate your growth plans into a space plan, so every square foot you take actively supports your next stage.”
What can you do to get ahead of your next office move?
If you’re hiring quickly, outgrowing coworking, or staring at a traditional lease that feels like a step too far, now is the moment to explore flexible and managed options.
The right space won’t just be cheaper and easier to change – it will make it easier to hire, meet, and actually enjoy coming in.
ADAPT’s service is completely free for occupiers. They can help you compare coworking, managed and larger flexible offices side-by-side, and then secure a space that fits how your team really works today – and where you’re heading next. Get your free consultation here.
