Building A Gas Station/convenience Store.
I have this parcel which is located on a high-traffic corner and it occurs to me that it would be a good location for a gas-station/convenience store.
It would also work for other retail but its only about an acre so that makes for a fairly small footprint (10,000 square feet or so) by the time we set off a 3/1 parking ratio.
So the big advantage of a gas station (to my way of thinking) is that I don't need a tenant to make it happen (as opposed to if I were to try to recruit CVS or Walgreens to the site). I could build the station and open it up and then sell it with an income stream as opposed to waiting for some corp. to make a decision.
Ok, so what do I need to know?
I've checked the local zoning-- I'm good. If the building doesn't exceed 5,000 square feet (cannot imagine building anything bigger than that) I can get normal-process building permits above that I have to go to the county planning commission. Above 10,000 square feet to the county planning board.
At some point I would need architects/engineers who specialize in this sort of project. Any suggestions?
As I recall from hanging around the edges of such projects there are two different kinds of relationships with the oil co.'s/distributors. In one the Co. essentially owns the store and the operator leases. In the other the operator owns the store and buys gas at dealer prices. But I don't recall specific names for these two different relationships, have no real idea which one is better in my circumstances (though since I control the land I'd bet I'm better off continuing to control the land).
Anyway, any and all advice, comments and witty remarks are greatly appreciated.
bump
I have no experience with gas stations (except to use them). However, perhaps you should also check with the state environmental agency to find out their requirements for UST's. I wonder if you might be better off selling the property instead of controlling it--from the point of view of being on the hook for contamination if the tenant screws up or when more changes occur in regs.
Sorry I don't have enough time to address this fully but...
I've appraised quite a few convenience stores and truck stops....I've seen RE investors make the best money selling development sites. They generally just put it up for sale or do some scouting for potential buyers...I don't think you'll get as good of a return if you develop the site as an independent. Thats about all i've got time for right now...sorry! Also, most newer c-stores are going towards the 5,000+ SF improvements, it seems the c-stores just keep getting bigger and bigger.
Dear Commercialking,
I would recommend that you get a "flagged" gas station for your site if it is possible. A flagged gas station is a national brand which may be corporate owned or a franchisee.
From an exit strategy standpoint, you would be able to either demand a higer price per sq ft. Or if the tenant is willing to sign a long-term lease, a much lower cap rate which means a higher price to you.
Good luck to you.