A barbershop building for rent can become the foundation for your dream business
Jul 3 2025

Barbershop building for rent near me: What to look for before signing a lease

According to Kentley Insights, the barbershop market has been steadily rising over the last 3 years (6.5% CAGR), reaching its peak at $6.4 billion in 2024. Pretty amazing, right?

And here you are – tossing around the idea of opening your own place. You’ve finally found the perfect barbershop building for rent near you and pinpointed what will set your men’s grooming services apart. Now, you want to take a step back and give your lease agreement another look to check for any red flags that may lead to the failure of your barbershop business.

Lease terms and the possibility of extension

After building a barbershop for rent, property owners are interested in one thing: collecting the highest returns. Longer lease terms can help them in doing so.

Some landlords will insist on a standard 3-5-year term. Rental properties in high-traffic retail strips (or malls and centers) may come with shorter lease periods (1 to 3 years), with the hope of enticing small businesses or tenants to fill vacant spaces fairly rapidly. The first thing to do is to check the term in your rental agreement and determine whether it suits your business plan.

Most commercial leases also include a renewal option. It gives you the right to renew your lease (if you want to) for one or more additional periods. Pay attention to whether the contract has a Break Clause that allows you to terminate it early without penalties (or with minimal losses). This option may be useful if your barbershop business fails to be profitable.

Rent and additional costs

These days, commercial leases for barbershop buildings for rent include not only base rent for the space but also a large portion of additional costs. Most landlords impose Common Area Maintenance (CAM) fees, calculated based on the tenant’s pro rata (a fancy term that means proportionate) share of the total building’s operating expenses.

Before you put your name on that lease, ask for a detailed breakdown of all costs:

Negotiate a CAM cap if possible to prevent unexpected spikes in operating expenses down the road. If the fees or limits are unclear to you, ask the landlord for CAM statements over the last few years.

Restrictions on the use of the premises

There is a Use Clause in most barbershop space rentals that clearly explains what you may use the premises for. Ensure that all activities you intend to engage in are permitted: 

If the Use Clause is worded too narrowly, you risk limiting your barbershop business or violating the agreement by expanding your services without the landlord’s consent. Moreover, you’ll want your landlord to include the Exclusive Clause or Prohibited Use restrictions, meaning that your competitors might not be allowed to settle in the same shopping center or carry out specific actions near your premises.

And then come zoning regulations. Zoning laws are strict regarding the type of business that can operate in a particular building or location. If you violate them, you risk receiving a fine or seeing your business shut down.

Ask your landlord to confirm that the premises are suitable for the desired purpose, typically in the form of a certificate of occupancy, and that they comply with local zoning laws.

Rights to repair and re-equipment

Before signing a lease for a barbershop building for rent, check your rights to make repairs and re-equip the space (Tenant Improvements, or TI). As a rule, landlords allow certain changes to bring the place into line with your brand, such as:

But all these improvements must be agreed upon in advance. Your contract must state what exactly you are allowed to do yourself, what requires written approval, and what is generally prohibited.

In the USA, commercial leases come with the so-called TI allowance, which is a fixed amount that the property owner is willing to compensate the tenant for arranging the space for business. If your concept involves a major redesign, it’s worth agreeing on the maximum TI allowance before signing the contract.

Early termination conditions

Early termination is one of the trickiest topics in commercial leasing, particularly for barbershop buildings for rent near you. A standard lease doesn’t provide for an automatic, easy exit. If you decide to close your salon or move out early, the landlord has the right to demand full compensation for the unused portion of the lease period. 

Review your agreement for the Early Termination Clause. It should define whether you can terminate it before the end rental date, under what conditions, and with what financial consequences.

Building a barbershop for rent near me: Insurance provisions

An Insurance Clause protects the interests of the tenant and the landlord. Depending on what you’re signing, you may have to buy commercial general liability insurance (CGL), which compensates for the risks of bodily injuries to customers or other third parties that could arise on your rented premises. Other policies that the landlord may require include:

Do not just go with the general requirement of being insured when signing a lease for a barbershop building for rent. Ask your landlord to share documents that outline the type of insurance needed, the minimum liability limits, and the list of individuals who should be added as additional insured. 

Talk to insurance brokers who are well-versed in commercial salon and barbershop insurance, as you may qualify for lower rates or more favorable policy packages.

Sublease and transfer rights

An Assignment Clause is the point in a commercial lease that gives you flexibility if your plans change, or you need to transfer your barbershop business to someone else. In standard leases, landlords strictly control the tenant’s privilege to sublease or assign the lease to third parties. These actions are only permitted if you obtain the property owner’s written consent.

Without this clause, you risk being tied to your rented premises, even if you want to close your salon. Insist on being able to sublease or assign to someone on your side.

Don’t feel like signing a 5-year lease plagued by red flags? Consider starting with a shorter-term commitment with Optima’s flexible barbershop suites for rent. Contact us to learn more.