While “serviced office” providers are these days perceived as more mainstream than before, “some landlords and investors continue to be relatively cautious with regards to leasing space” to them, according to a new report from Avison Young’s U.K. arm.

As a result, landlords are finding it harder than ever to lease space that comes into direct competition with serviced offices.

Tenant turnover within coworking spaces tends to be “considerably higher than on traditional leases.

The search for solutions Despite all the challenges, the report acknowledges that serviced offices can, among other advantages, comprise an amenity for traditional tenants, by providing overflow space.

Avison Young suggests that one solution for a landlord might be to enter into a management agreement with a coworking provider and points out that Industrious and Convene are already doing this in the U.K. As in the U.S., the growth of coworking has pushed some landlords to offer fully build-out, “plug and play” spaces, which both enables potential tenants to visualize the space and speeds up the move-in process.

In a blurring of roles coworking operators such as Knotel and WeWork HQ are offering space with custom build-outs and tenant branding opportunities.

In another parallel with the U.S., some landlords in the U.K. are offering their own coworking spaces, such as British Land’s Storey.