From dingy to upmarket, tattoo parlours are undergoing a bougie makeover

Tattoo parlours of the past were typically dingy, sometimes spooky and often associated with bikie gangs, but many modern ink joints are going seriously upmarket.

Even so, first-time investors should be cautious, one expert warns.

Sole Tattoo in Sydney is an example of the new, hipster brand of tattoo parlour.

Located on the ground floor of a recently redeveloped shopping centre in the inner west suburb of Marrickville, it’s bright and welcoming, art lining the walls and trellises of plants and sunflowers framing the inking stations.

Since opening in March 2022, manager Bea Pela’s team has tried to transform the image of the traditional tattoo parlour connected to bikies and run by men, into something “pretty and welcoming” that’s also run by women.

The interiors are contemporary and inviting. Picture: Vie Studio

“We wanted to break a stigma that tattoo parlours are very dark, uninviting spaces,” Ms Pela said.

“We have a lot of people wandering in, and they are usually very surprised that we are a tattoo parlour.

“Women in their 20s are coming in because they’re not scared and they feel safe. Sole is for all ages, all genders.”

Australians are more inked than ever before, with one in five having one or more tattoos, and almost one in four females, according to 2018 research by McCrindle.

And the inks are no longer a sign of youthful rebellion.

More than a third (36%) got their first tattoo aged 26 or older, and one in five (20%) got their first tattoo in their mid 30s or beyond.

Ms Pela said while some tattoo parlours remain on the dark and dingy side, many are now changing.

“They’re looking for bigger, brighter spaces that are not as scary for younger customers.” 

Right for first-time investors?

Ms Pela said business at Sole remains steady, though rising interest rates and cost of living pressures could see some Australians cut back on this type of discretionary spending.

Even if demand for tattoos remains high, this doesn’t necessarily make tattoo parlours a solid investment option, warned Vanessa Rader, head of research for Ray White Corporate.

Ms Rader describes them as “high-risk occupiers”, with previous shadowy reputations around links to bikie gangs and theft continuing to dog them.

“They are more akin to a vape premises than a beauty premises, with many insurers not willing to insure against them, and the tenants requiring council approval before they can occupy,” she said.

Insurance premiums are high, and although these costs are passed onto tenants, Ms Rader suggests first-time commercial investors should stay away.

But on the flip side, because it’s often difficult for tattoo parlours to find suitable premises where the landlord and council allows them, they often stay for a decent amount of time and expand into neighbouring spaces, she added.

“Tattoo parlours suit those willing to move up the risk curve,” Ms Rader said.

“If you are not a seasoned investor, I would probably stay away given the issues that can be associated with them. But if you are OK with the risk, they could be appealing.”

As tattoos have gone more mainstream, so too have tattoo parlours. Picture: Getty

Meanwhile, Shaun Venables, a partner at Burgess Rawson, doesn’t consider tattoo parlours to be of greater risk than other categories, and said the price “is likely to appeal to first-time investors”.

“If the tenant has proven themselves to be reliable under the terms of a sound lease, then they provide the same opportunity that any other leased investment,” Mr Venables said.

“But like any asset, investors would need to do their due diligence and consider aspects such as the tenant’s trading history, the location and the improvements on the title.”

Not many on the market

Not many tattoo parlours are listed for sale, with about 10 on realcommercial.com.au at the moment.

Some offer artistic inks, others cosmetic, while some are para-medical services – where tattoos help camouflage or enhance the appearance of an area of skin – or offer tattoo removal.

Some premises come with established long-term leases, while others with short-term leases are advertised as being adaptable for other tenants such as beauty parlours, massage parlours, hairdressers, or nail studios.

Most listed tattoo parlours are offered alongside other premises such as beauty clinics, pilates studios and cafes.

In Caulfield in Melbourne’s south, a cosmetic tattoo parlour specialising in lash and eyebrow artistry is being offered as an entry-level investment through Ray White Commercial.

Only Lashes Beauty Bar, a light space with white and pink walls and plush velvet seating, is leased until October 2023 with three further terms of one year each.

Agent Ryan Amler said there have been plenty of enquiries during its four weeks on the market, mainly from first-time commercial investors.

“There’s a stigma that tattoo parlours are connected to organised crime but if they’re upmarket and in a good location, they can be good tenants,” Mr Amler said.

He added that there was no issue with the perception of cosmetic tattoo parlours, though it was a tough market.

“Buyers are picky and cautious at the moment,” he said. 

Art and lifestyle

Occupying a historic corner building on Brunswick Street in Melbourne’s Fitzroy, a former hotel is for sale with three tenancies – a restaurant, a pilates studio, and long-standing tenant Heretic Tattoo.

With large windows, exposed brick walls and timber floors, the first-floor tattoo parlour is a bright and character-filled space that appears both tasteful and welcoming.

A commercial space housing famed Heretic Tattoos is now on the market. Picture: realcommercial.com.au

Agent Ethan Wong from Nelson Alexander Commercial said there has been plenty of interest in the property ahead of the auction on March 31.

Mr Wong said he hasn’t come across any hints of fear about tattoo parlours as tenants among potential buyers.

Given the popularity of tattoos, Heretic Tattoo is booked out for months, he added.

“I don’t think people have anything against tattoos if they pay rent on time and make good money,” he said.

“People are willing to take them on given the popularity of tattoos. They do well. They’re not really related to bikies these days. They’re about art, or a lifestyle.”