COMMERCIAL REAL ESTATE guru, and Vice President of Cursor Realty Corp, Willow Shambeck, works directly with renters looking for the perfect salon space. Here he provides SALON TODAY with tips on what salon owners should consider before buying in regards to market, location and incoming costs.
SCOUT YOUR MARKET and know your competition. Who are the strong salons in the area and why? Who are the weak salons in the market and why? Use this information to mold yourself into one of the successful ones.
KNOW CLIENT DEMOGRAPHICS like income levels, age and ethnicity. Then seek the neighborhood that fits within these demographics.
LOCATION IS CRUCIAL. Most customers will only travel five miles to a salon, so find a location close to your target customer.
SHOPPING CENTER ALERT. If you are seeking a shopping center location, be aware of the co-tenants and be sure that you are not competing with their services. For example if you offer nail services, an existing nail salon in the center may have a restriction not allowing you to enter the center. Be sure to ask the owner or leasing person if there are any conflicts.
SIZE OF SALON. Lease rates are based on a per-square-foot price so every square foot of your salon should be utilized and profitable.
PRE-EXISTING SPACE. Due to high incoming costs for a salon (impact fees, plumbing) it is best to find a pre-existing salon space. This can be accomplished by purchasing an existing salon or recently closed/relocated space.
EXPLORE THE MARKET for new retail space. A developer can typically assist with incoming costs by putting your required plumbing in during initial construction.
GET A GOOD REAL ESTATE REPRESENTATIVE. Agents can assist you in your site selection process. They should be experienced in lease negotiation, site selection and be familiar with local codes and market history. They can save you thousands of dollars not to mention time.