As investors look into new opportunities for triple net lease properties, one type of business that’s repeatedly mentioned is a gas station. The best types of commercial real estate leases involve relationships with businesses that are recession-proof, meaning they will always be needed regardless of the current economy. Therefore, gas stations are a smart investment opportunity to consider.
As a new investor or someone looking to expand their portfolio, you may be asking yourself “where can I find a gas station for sale near me?” Finding a great business investment opportunity in commercial real estate can be a challenge, especially with gas stations because there are so many options to choose from, and it’s important to know what a triple net lease is and how it effects the acquisition of gas station properties. Here’s what you should know about NNN leasing as it relates to finding gas stations or convenience stores for sale.
Investing in Gas Stations: The Basics
There are a few reasons why gas stations for sale and C-stores that are available to buy, make great NNN investments which include location, type of business, and lease length.
The ideal property available for sale would be located in an area that is easily accessible with good traffic. Often, this means a corner lot. It should also be in a part of town that is growing, allowing for new customers to come to the area over the length of the lease.
Owners usually want to find a tenant who won’t default on a long term lease in hard economic times. The types of businesses that can often withstand economic turmoil include grocery stores, dollar stores, medical offices, gas stations and convenience stores.
Furthermore, gas stations are a necessity for consumers and if they are in a good location, they are a prime candidate for a long term lease.
NNN leases of gas stations are usually 10 to 25 years, with financial benefits for both the landlord and the tenant. While all leases are unique to the situation of each property, many of the costs associated with NNN leases are usually passed to the tenant. This includes maintenance and repairs, insurance costs, and property taxes.
For tenants, this means they can build these costs into their business expenses. They can plan maintenance and repairs around their schedule, working with contractors to perform necessary work. They can establish a presence and customer base, with the knowledge that they will be in one location for many years to come. This gives the business a chance to get settled into a community.
For investors, this type of lease gives them the chance to focus energies elsewhere and on other properties or projects they are involved with. There are fewer unexpected expenses for investors with NNN leases, as most expenses are passed to the tenant. They can also expect consistent income from their NNN property.
Find more information on the best types of NNN tenants
Finding the Right Gas Station for Sale
Gas stations are a great investment opportunity for those looking for triple net real estate to purchase. Once your decision has been made to invest in a gas station, you can start by searching online to see what is currently out there. You may come across a lot of information and options, like local shops in small towns or bigger gas stations near college campuses. How can you be sure that investment is the right one for you? When you are ready to seek out convenience stores and gas stations for sale, there are a few things you should know.
First, not all investment opportunities are created equal. Triple net leases are all similar, but there are some differences in each lease. Always consider what you want in the lease as you look for a gas station property that can accompany it. Advisors can help you determine your goals for each property, and are a great resource when seeking out new properties.
Second, keep in mind the key factors that make a good triple net property and with gas stations, that is often location, location, location. There are gas stations located in neighborhoods and along interstates of small towns, mid-sized cities and large cities.. Look for a gas station or convenience store that is in a good location and is the right type of property for you.
Finally, consider working with a professional. There are experts who specialize in helping investors like you find the right convenience store opportunity. Sands Investment Group works as an outsourced real estate firm to help gas station operators with growth and expansion, and with single unit operators on franchising options, site selection and financing.
The triple net lease experts at Sands Investment Group have helped investors close deals on many gas stations and C-stores, including various locations across the U.S. for:
- Several Texaco locations in Georgia
- Valero in Tyler, Texas
- Multiple 7-Eleven locations: Dallas, Texas; Sewickley, Pennsylvania; Silverthorne, Colorado; and others
- Exxon in Auburn, Georgia
- Multiple Circle K locations: Houston, Texas; Opelika, Alabama; and others
- Several Chevron locations in Georgia
The trusted advisors at Sands Investment Group can bring more to the table than simply identifying properties for you. We can help with existing real estate assets, acquiring new operators or businesses, developing new C-stores and working to restructure leases to reduce your costs. We’ve handled one-off deals and acquisitions of multiple convenience store locations, so we can help you get the right gas station investment for your portfolio.
For more information or to get started on finding your next, smart, gas station for sale investment, get in touch with Sands Investment Group experts. These advisors can help identify and secure a great investment opportunity. Call 844.4.SIG.NNN or send us an email to get started.