Anyone here in the commercial “cosmetic” space

[Tanner Marsey]

Good morning.

I am a residential buy and hold investor but have been approached about partnering on a commercial “cosmetic” building. Essentially a bunch of small office spaces, very minimal furnishings, low maintenance type of units where individuals have clients come to get cosmetology type work done. Hair, make up, waxing, eyebrows, etc....

Admittedly, I am unfamiliar in this space but it appeals to me for a few reasons. Seeming low maintenance. Tenant is responsible for pretty much everything in unit besides lighting and water. No/very little landscaping. Growing industry. Turning over units would require very little work/money.

Concerns: not recession proof at all....

Anyways, if you’re in this space I would love to hear some feedback and maybe be made aware of some of the things I have missed.

Thanks so much!

[Account Closed]

I owned a salon from 2001ish to 2010.  It's still in business, although we lost all of the profit in that business with products ending up at Ulta and Walmart.  The idea of the salon was that the booth rental from the stylists would cover all the overhead and the product sales and other things I had there to purchase would be the profit.  I would say it depends on the building class, as if the rent is too high for the stylists in a recession they can easily pick up and move to a cheaper location.  Research that and be in the middle to lower end on the rents and if that works then salon suites is not a bad setup.