How Much Does It Cost to Rent a Coffee Shop?

Opening a coffee shop may sound exciting. But here’s the hard truth: rent is usually one of the biggest hurdles for anyone trying to turn their coffee dream into a real business. According to recent data, rent prices for coffee shop spaces can swing drastically, from $2,000 a month in small towns to well over $10,000 in high-traffic urban areas on average.

This kind of variability makes it tough to budget and even tougher to decide where and how to start. But don’t let that discourage you. The good news is, there’s a way to plan around it. By knowing what influences rent, comparing costs across different cities, and learning how to negotiate a lease that works for you, you can find a space that suits your budget and your vision.

Why rent a coffee shop instead of buying?

If you’ve already explored the idea of owning a coffee shop building or a cafe, you might be wondering why so many cafe and coffee shop owners choose to rent instead. Here’s the thing: renting gives you flexibility, access to prime locations, and lower upfront costs. And when you’re just starting out, those three things matter a lot.

Buying a commercial property can require a down payment, and not to mention the responsibility of property taxes, maintenance, and repairs. It also ties up a large chunk of your capital, which could be used to grow your business, buy top-tier coffee equipment, or invest in marketing. Renting allows you to allocate more of your budget to things that directly impact your customer experience and establish cost controls.

Another big advantage of renting is location. Many high-traffic areas, like downtown districts, near college campuses, or busy intersections, are filled with spaces that are only available for lease. Buying in those same areas is often out of reach or simply not an option because the properties aren’t for sale.

Leasing also makes it easier to pivot. If your first location doesn’t work out or you realize your customer base is stronger in a different part of town, you’re not stuck with a building that’s hard to sell or move from. This kind of mobility can be a lifesaver in your first few years of operation.

Of course, renting isn’t without its downsides—your rent can go up, and you’re at the mercy of a landlord. But for many new coffee entrepreneurs, the trade-off is worth it. You get a faster path to opening your doors and testing your concept, without having to commit to a permanent space from day one.

Factors that affect coffee shop rent costs

So, how much does it cost to rent a coffee shop? That depends on various factors. There’s no one-size-fits-all answer to how much you’ll pay in rent because so many different pieces come into play. From your location and layout to what kind of setup you choose and what features come with it, every detail plays a part in the final monthly cost.

Location

Location isn’t just about choosing a popular state or city, but it’s also about what part of town you’re in, how much foot traffic you can expect, and whether the space is near offices, schools, transit hubs, or residential neighborhoods. Visibility from the street, ease of parking, and local demographics all play a role in how valuable a location is. These can significantly impact both your rental fee and your potential to attract regular customers.

Below is how different locations compare.

For example, if you’re eyeing a spot in Manhattan for rental, expect to shell out over $10,000 a month for a compact space that’s maybe 400 square feet. That price reflects the heavy foot traffic and prime location, especially with big events. But if you shift your focus to neighborhoods like Brooklyn or Queens, you might find similarly sized coffee shops in the $4,000 to $6,000 range—still pricey but a bit more manageable. 

In cities like Austin, Texas, renting a space in a trendy area such as South Congress or East Austin could cost you anywhere from $3,000 to $6,000 a month. But in quieter parts of the city, those numbers drop.

Now, if you’re leaning toward smaller markets like Boise, Idaho, or Tulsa, Oklahoma, rents tend to be more affordable. You could score a decent location for $1,500 to $2,500 monthly and still enjoy a supportive local crowd. Just be sure the area gets enough traffic and attention to support your concept.

If you’re banking on walk-ins and casual drop-bys, a spot with strong pedestrian flow is worth the extra rent. But if your model leans on delivery, drive-thru, or regulars, you might not need to spend big on a central location.

Size and layout

The size of the shop directly affects how much rent you’ll pay. Most small coffee shops fall in the 300 to 1,500-square-foot range, which offers enough room for a prep area, a counter, and some customer seating. Larger spaces, especially those over 2,000 square feet, may give you the opportunity to add a full kitchen, a bakery station, or even a co-working area, but the rent will rise accordingly.

Another thing to think about is whether the space already has a build-out. That means things like a counter, sinks, plumbing, and maybe even some leftover equipment are already in place. Spaces like this can save you a lot of time and money upfront. If you’re renting a blank canvas with no previous food service setup, you’ll need to factor in build-out costs and time for inspections and permits. 

Below is a rough breakdown:

More square footage gives you room for seating, kitchen prep, and ambiance, but you’ll also be paying to keep it lit, staffed, and climate-controlled.

Type of coffee shop setup

Not every coffee shop looks the same. Your choice of coffee shop or restaurant concept and the kind of setup you choose will affect your rent. Traditional brick-and-mortar locations typically cost more, but they give you that cozy, familiar cafe feel that guests love. If you’re going for a kiosk-style setup, like something you’d find in a shopping mall or airport, you’ll probably pay less rent, but you might have to give the property owner a cut of your sales. Those agreements can vary and sometimes add up faster than flat-rate leases.

Mobile coffee shops, such as trucks or trailers, are becoming more popular and offer more flexibility. You might rent a parking spot on a private lot, food truck park, or festival ground for $500 to $1,500 a month. High-traffic spots in cities like Los Angeles or Portland can cost more, especially if the location already has strong foot traffic or built-in audiences.

Also, be aware of lease types. Some landlords use triple net (NNN) leases, which means you’ll pay rent plus property taxes, insurance, and maintenance fees. Always clarify exactly what’s included before signing anything so you’re not surprised by extra fees.

Amenities, furniture, and utilities

The features that come with your space can make a big difference in both how much you pay and how much you need to spend later. Some rental properties are “turnkey,” meaning they’re ready for business with plumbing, restrooms, grease traps, ventilation systems, and commercial-grade electrical setups. Others are bare-bones and require significant investment.

Furniture is another thing to think about. Some spaces may come with tables, chairs, and shelving already in place. This might not seem like a big deal, but outfitting your cafe with quality ones can cost anywhere from a few thousand dollars to upwards of $10,000, depending on your aesthetic. If you’re lucky enough to score a space with decent, usable furniture, that’s a huge win for your budget. 

On the flip side, you may need to factor in buying everything yourself if the space is completely empty.

Also, ask if utilities are included in the rent. Some landlords roll them in, while others leave you to cover electricity, water, and gas. If you’re running espresso machines, refrigeration units, and HVAC machines and systems during hot summers, those utility bills can get steep fast. A $600 electric bill isn’t unheard of in warmer climates.

Move-in ready vs. bare shell spaces

Choosing between a move-in-ready (turnkey) space and a bare shell (also called grey-box) is a big decision that impacts your timeline, budget, and workload.

Turnkey coffee shops (Move-in ready)

A turnkey coffee shop is a space already set up for food and beverage service. These often include essential infrastructure such as plumbing, counters, lighting, and, in some cases, kitchen or cafe equipment. Many also feature ADA-compliant restrooms and completed HVAC and electrical systems. If you’re looking to get started quickly and reduce the time-consuming process of permitting and construction, a turnkey space can be an excellent solution.

The primary advantage of a turnkey shop is speed. With most of the infrastructure already in place, you may be able to open in a matter of weeks rather than months. There’s also a major cost benefit: although rent tends to be higher, you can save a significant amount on buildout and avoid the stress of coordinating with contractors and city inspectors. These spaces work especially well if your concept is aligned with the previous tenant’s setup, such as a coffee shop replacing another cafe or smoothie bar.

However, turnkey spaces come with trade-offs. Layouts may not align perfectly with your vision, and any included equipment may be outdated or in need of maintenance. It’s common for landlords to charge more per square foot because of the existing buildout, but that premium might be worth it if you’re aiming for a fast and less risky launch.

Keep in mind, though, that not everything will be a perfect fit. The layout may not match your ideal flow, and the included equipment could be outdated or need servicing. Some landlords may still offer a small Tenant Improvement (TI) allowance for minor modifications or upgrades. These are usually more limited in turnkey deals but can still help cover updates or tweaks to suit your brand.

Shell or grey-box spaces

Shell spaces, on the other hand, offer a blank canvas. These are typically empty interiors with minimal, if any, completed infrastructure. You may get four walls, a concrete floor, and basic exterior windows or doors, but the rest, plumbing, electrical, HVAC, walls, and restrooms, will be your responsibility. Shell spaces appeal to those who want complete creative control over the design and flow of their shop.

This freedom comes with a cost. Buildout expenses for a shell space can easily range from $100,000 to $300,000 or more, depending on location, health code requirements, and the level of customization. You’ll also face a longer setup period, often several months, to account for architectural planning, permits, inspections, and construction timelines. These make shell spaces more suitable for experienced operators or brands with sufficient funding and a clear long-term vision.

One way to help offset those high costs is by negotiating a Tenant Improvement (TI) allowance. This is a financial incentive from the landlord, often calculated per square foot. TI funds typically cover essentials like plumbing, HVAC, restrooms, and kitchen installation, but not soft costs like permits or branding. Reimbursements usually happen after you show receipts or hit certain milestones, so make sure you’re clear on the process before signing the lease.

Types of leases

When you’re reviewing a commercial lease for your coffee shop, it’s easy to focus on the headline number: the monthly rent. But the structure of the lease itself can be just as important, if not more. 

Different types of leases come with different responsibilities, and knowing which one you’re agreeing to can save you thousands in the long run. The lease you sign will determine not only what you owe each month but also how much control you have over your space, how often your rent could increase, and what surprises may pop up on your bills.

1. Gross lease (full-service lease)

With a gross lease, you’re paying one predictable flat monthly rent, and the landlord takes care of the rest. Property taxes, insurance, and most building maintenance fees are included in that single payment. This type of lease is especially helpful if you’re just starting out and want to keep your budgeting simple. You’ll know exactly how much is due each month, which makes it easier to plan around other resource expenses like inventory and marketing.

In cities like Chicago, gross leases are more common in office buildings or mixed-use properties where landlords want to maintain a uniform approach across multiple tenants. In smaller cities or suburban areas like Austin or Nashville, retail landlords may also offer gross leases as an incentive to attract new tenants to developing areas. These leases can be a great deal, especially if the landlord is motivated to fill the space quickly.

But even with a gross lease, you’ll want to double-check what’s actually included. Are HVAC repairs covered? What about utility costs? Some gross leases sneak in partial utility charges or maintenance limits. So, always read the fine print and clarify anything vague before signing.

2. Net lease (single, double, and triple net)

Net leases can be a bit trickier to navigate. In these agreements, the landlord charges you a lower base rent but adds additional expenses on top. A single net lease passes property taxes to you. A double net lease adds insurance to the mix. And with an NNN, you’re responsible for all the big-ticket items beyond your base rent, namely property taxes, insurance, and maintenance.

Triple net leases are common in retail plazas and strip malls, especially in states like Florida, Texas, and California, where shopping centers are sprawling and anchored by big-name tenants. While the lower base rent can seem attractive, don’t let it fool you. When you add up the NNN charges, your monthly fees can climb quickly. 

For example, in Miami or Dallas, NNN fees can run between $8 to $12 per square foot annually, which could mean thousands extra each year depending on your square footage.

If you go the NNN route, ask for detailed estimates of past NNN charges for the space, and find out if any major building repairs are on the horizon. Roof replacements, HVAC overhauls, or parking lot repaving fees could land in your lap under this lease type.

3. Modified gross lease

A modified gross lease offers a middle ground. You still pay a base rent, but you also share some of the operating expenses with your landlord. Often, this includes utilities, janitorial services, or common area maintenance, but not taxes or major repairs. It gives you more cost certainty than a net lease and less all-inclusive predictability than a gross lease.

Modified gross leases are frequently used in multi-tenant commercial properties across the U.S., especially in urban areas where shared services like common area maintenance and utilities are easier to allocate. According to LoopNet, these leases are often preferred in office and retail settings because they provide tenants with more predictable costs than net leases while still giving landlords room to recover some expenses. 

For instance, in cities like Seattle and Denver, landlords may structure modified gross leases to include janitorial services and water, while tenants cover electric and HVAC maintenance separately. These setups appeal to small business owners who need more control over fixed expenses but want to avoid the unpredictability of full triple net leases.

Because every modified gross lease is different, you really have to read every clause. Try to get a clear breakdown of what expenses you’ll be sharing, how those fees are split, and how often they get reviewed or updated. This lease works well if you’re confident you can manage variable fees but still want to avoid the surprises that come with full NNN exposure.

How can I cut costs without cutting corners?

If traditional rent feels like it’s stretching your budget too thin, don’t worry. You’re not out of options. There are still smart, creative ways to launch your coffee shop and reduce restaurant expenses, without sacrificing quality or customer experience.

Start with a cart or kiosk to attract customers

Starting small with a coffee cart or kiosk can be a game-changer. You won’t need a full buildout or a massive footprint. All you really need is a steady stream of foot traffic and a compact setup, including an espresso machine. Office buildings, farmers markets, and university campuses are all excellent places to set up shop. 

For example, in cities like Portland or Ann Arbor, you’ll find coffee carts thriving on college campuses. Rent for a small kiosk space can run from $500 to $1,500 a month, which is a huge savings compared to a full storefront. You get the chance to build your brand, develop your recipes, and establish loyal customers without the weight of a traditional lease dragging you down.

Explore pop-up opportunities

Pop-up shops offer another creative route. These short-term, flexible spaces are often found inside bookstores, coworking offices, event venues, or lifestyle boutiques. You may be able to rent just a few hundred square feet inside an existing business, which cuts your rent way down and brings in foot traffic you wouldn’t get on your own. They’re a testing ground for long-term success.

One standout example is the success story of Drip Coffee Makers in Brooklyn. They started as a weekend pop-up inside a vintage record store, paying just under $800 a month for a small counter setup. With only a few hundred dollars in initial investment and limited equipment, they built a solid customer base by targeting foot traffic from music events and local footfall. Within six months, their daily sales hit $1,000 on average, and they built enough traction to transition into their own brick-and-mortar location just two blocks away. That pop-up didn’t just test the concept, but it launched the entire brand.

A well-executed pop-up can be your stepping stone to a permanent spot, and it’s also a great way to gauge how your concept performs in real-time with your customers.

Consider co-retailing partnerships

Then there’s co-retailing, a setup where two or more businesses share the same commercial space. Think of a coffee shop that shares its square footage with a bakery, a record store, or even a yoga studio. This isn’t just about saving on rent. Your customers get an enhanced experience, and you get to split costs with a business that complements yours.

For instance, in Denver, you’ll find a few roasters that co-retail with bike shops, like SloHi Coffee + Bike, which offers a unique blend of a coffee shop and bike store under one roof. These setups give you built-in traffic and a unique atmosphere that helps you stand out.

Look for rental/lease takeovers or second-generation spaces

You should also keep an eye out for lease takeovers or second-generation spaces. These are locations that were previously cafes, coffee shops, or food businesses. These spots may already have the plumbing, electrical systems, counters, and kitchen setup you need. In some cases, you might be able to take over an existing lease with minimal upfront costs, especially if the previous tenant is eager to exit. 

This route saves you thousands on construction and permitting. Cities like Seattle and San Francisco, where buildout costs are notoriously high, offer many lease takeovers simply because businesses change hands often.

Grounds for success in getting the right coffee shop space

With all these insights, you’re not just an avid coffee lover anymore. You’re now prepared to build a business around your passion and make informed, strategic decisions to turn that passion into reality. As Simon Sinek, an English-American author and inspirational speaker, once said, “Dream big, start small, but most of all, start.”

The best part is you don’t have to do it all alone. While you’re busy crafting the perfect pour-over and curating your space, tools like 7shifts can help you schedule your team, track labor costs, and keep operations smooth. It’s one less thing to worry about while you focus on the hot brew and ambiance. Renting smart is just the beginning. Now it’s time to make it yours, with every detail brewed to perfection.