MiSfiT tenants…are they in your building?

My definition of a “misfit” tenant is an office space use that is allowed into a suite that does not fit the use of a traditional office tenant.  In softer markets landlords may attempt to maintain occupancy going a little further than giving attractive concessions.  When a landlord crosses the line and closes a deal with a “misfit” tenant, the entire building  (including the tenants) can suffer.

Now, I am represented or worked with almost all of the industries that I am about to name with the exception of abortion clinics.  Any good broker will direct these tenants to options that can adequately accommodate them.  If you happen to be a misfit tenant, get a broker with experience with working with your industry and start your relocation project at least 6 months to a year in advance before your move.

Characteristics of “misfit” tenants for office space can vary based on the building, but the most common misfit tenants are the following:

Salons and Barbershops – They use a lot of utilities, require a lot more build out, really thrive much more in a retail or mall environment where they benefit from the exposure and foot traffic.  If you walk into an atrium building immediately smell perm, weave, and shampoo…. You guessed it!  There is a “misfit” tenant in the building!

Deli w/out proper ventilation – Deli’s are great ….most of the time.  A deli without proper ventilation can have an entire building smell like a greasy kitchen inside of a month!

“Drug Centers” – These centers thrive in unregulated class C buildings where they can get away with the sometimes inappropriate or illegal activity that goes on in these centers.  I have seen a few reports in my years of thefts,  break-ins, even shootings where these centers have been located.

Educational Institutions –  High traffic and density are two of the major problems with these institutions in many buildings in the Houston market.  Most office spaces are designed to accommodate about 4-5 spaces per 1,000 sf of space.  Just one classroom alone can easily take up many of the prime/non-reserved parking that tenants would like reserved for their own visitors.

Call Centers -  Call Centers share the same issue with educational institutions high traffic, high density of employees.  Occasionally neighboring tenants will complain about call center employees not complying with a professional dress code.  Some buildings are a great fit for call centers in Houston.  Some are not.  There are several buildings that I know that are very well suited for call centers and I will always try these options first when working with this type of client.

Buildings with the right tenant mix really add value to all of the tenants.  At the end of the day, a “misfit” tenant has just not found the right fit for their industry and needs to make a change.  Many times, this change will ultimately save them time, money, and the headaches of dealing with angry neighboring tenants!