First ETA Deal in Commercial Real Estate – Targeting Salon Suites, Thoughts?

July 27, 2025

by a searcher in Atlanta, GA, USA

Hi All—I'm transitioning into entrepreneurship via acquisition, and I’m currently honing in on my first deal: a commercial property currently operating as salon suites. This asset class appeals to me due to its mix of real estate + recurring revenue through individual tenant licensing, and a relatively resilient demand for beauty, health, and wellness services. I’d love to hear from anyone who has: Looked at or acquired a similar site Experience with CRE + operating businesses Tips for structuring leases or managing tenant churn in this niche Still early in my process, but excited to learn and build something meaningful. Appreciate this community! Warmly, Shaun

Reply by a searcher
in Atlanta, GA, USA

Thanks Mufazzal - Yes, I thought that I should clarify that I'm seeking a property ownership model (rather than lease-only) for an acquisition. I'm hoping to understand the structure of a deal that considers both the collateral the real property represents, the fixtures and equipment, and the value of secured leases.

Reply by a searcher
from Arizona State University in Scottsdale, AZ, USA

We have transacted a number of franchised and non-franchised salon suites over the last decade. This is not a real estate transaction though it look and feels like one, unless you actually own the underlying RE. Approach this as a business and understand cash flow and expenses. Important aspect is understanding your lease(s) and operation expenses like any other business. Location generally drives Occupancy and is an important consideration. Happy to chat privately if you want to share more details.

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