Guide to Leasing Salon Space

A G U I D E T O L E A S I N G

Choosing The Right Space

LOCATION

DILIGENCE

Pick a neighborhood that attracts your clientele and aligns with your brand. Ensure accessibility with parking and public transit. If you rely on walk-ins, choose a high-visibility area.

BUILDOUT

Decide between a full build-out for customization or renovating an existing salon to save time and money.

Look out for expensive maintenance concerns such as an aging HVAC system or signs of a leaking roof, as these can lead to costly repairs. Always clarify with the landlord what expenses they will cover

COMPETITION

If there are multiple salons or barbershops nearby that cater to a similar clientele, your ability to stand out may be limited On the other hand, a wellplaced salon in an underserved area could be a great opportunity to capture market demand.

Try to envision your salon within the layout. While elements like paint, furniture, and equipment can be changed, structural features such as natural lighting and the building’s exterior cannot. Natural light is especially important for both ambiance and ensuring accurate hair color results

VISION GROWTH

Consider the size of the space and whether it allows room for future growth A good rule of thumb is to allocate at least 100-150 square feet per stylist or employee Additionally, check fire and safety codes, as they may set occupancy limits. Thinking ahead to your business goals will help you choose a space that accommodates both your current needs and long-term vision.

ZONING

Many salon owners have faced costly setbacks after securing a lease, only to find out the space wasn’t zoned for a salon To avoid this, verify the zoning before making any commitments

AGENT

A real estate agent is highly recommended, as they can ask important questions and negotiate the best terms for you. And keep in mind, if you use a tenant rep broker, most of the time the landlord, not you, pays their fee!

Signing Your Salon Lease

KEY LEASING CONSIDERATIONS

Choosing between leasing and buying your salon space depends on your financial situation. Purchasing requires significant upfront capital and property management responsibilities but offers longterm stability and asset appreciation. Leasing, on the other hand, provides flexibility with lower initial costs but requires careful contract review.

IMPORTANT CAUTIONS

Avoid personal guarantees whenever possible to protect yourself if the business closes. Establish a partnership agreement before signing a lease if you ’ re co-owning the salon. This protects all parties in case of disputes or ownership changes.

REV AGR

Commercial leases differ from residential ones, so read every clause carefully. A commercial real estate professional can help identify red flags, and hiring a lawyer ensures you understand complex terms like triple-net or percentage leases. While legal fees add to startup costs, they provide essential protection.

Don’t settle for the initial terms have your real estate agent negotiate key points, such as an exclusivity clause to limit nearby competitors. Lease length is also crucial; most landlords prefer a minimum three-year term with renewal options. Since salon build-outs require significant investment, securing a stable lease is essential

CONGRATULATIONS!

You’re one step closer to opening your salon. Once you have chosen your salon location and the lease or purchase is secured, it’s time to get started on designing your salon.