Base rent plus CAM, property taxes and insurance, each usually quoted per square foot a year, multiplied by the square feet and divided by twelve. Barbershops plan with that whole cost at 10% to 15% of sales.
What does a triple net lease cost a barbershop each month?
Add the base rent and the triple net charges to see what the lease costs a barbershop each month, and the sales it needs at 10% to 15% of sales.
Total monthly cost$6,000a month in rent and NNN charges
$72,000 a year, or $40.00 per sq ft a year all in. NNN charges are 25% of the total.
- Sales needed to carry it
- $40,000 to $60,000 A month, at a healthy 10% to 15% share for a salon or personal services business
Where the money goes
- Base rent
- $4,500
- CAM
- $750
- Property taxes
- $600
- Insurance
- $150
Monthly sales needed at each share
$80,000$80K7.5%outside
$60,000$60K10%healthy
$48,000$48K12.5%healthy
$40,000$40K15%healthy
$34,286$34.3K17.5%outside
Blue columns are the healthy 10% to 15% band for a salon or personal services business.
The barbershop check reads public records at an address: who lives and works nearby, the barbershops already there and the traffic on its road. Check an address for a barbershop.
How the math works
Monthly cost = (base rent + CAM + taxes + insurance, per sq ft a year) × square feet ÷ 12
- Healthy occupancy share for barbershops
- Rent plus CAM, property taxes and insurance at 10% to 15% of sales, the same band DoorWorthy reports use for barbershops. Every type's band:
Healthy occupancy share by business type Business type Healthy share of sales Café or bakery 8% to 10% Restaurant or bar 6% to 10% Salon or personal services 10% to 15% Retail store 8% to 12% Fitness or wellness 10% to 15% Another concept 8% to 12% - Estimates, not fixed
- NNN charges are estimates the landlord reconciles, usually once a year, and they can rise.
- Not included
- Payroll, supplies, loan payments and build-out. This is a planning estimate for a lease conversation, not a sales or profit forecast.
DoorWorthy reports run this same calculation for a real address, next to the spending, competition and rules found there.