At any one time there are approximately 100 Gas Stations and Convenience stores available in California. This means buying a gas station is more difficult that you can imagine. There is a high level of demand and no availability. The total stock is approximately 10,000 facilities which means availability is around 1%
Of those stations available a large percentage will be over priced, in the wrong location or the wrong brand with an extended contract.
Many of the stations currently available are also failing. Most likely built 30 to 40 years ago they have had their time and the highest and best value is an alternative use. Others are just not selling enough inside and outside to warrant the price they are asking. One of our major roles is to guild you away from these stations. With the increase in California reliance on elcetric viehicles and the Govenors moritorum in new gasoline cars in 2035 it is important that you select a station that will survie the future
It makes sense to use a Petroleum Realty Group to help you buy a gas station.
How do we find the right station for you ?
Once we understand your specific need we can set about preparing a list of gas stations for us to look at together. These sites will either be listed with another broker or most often we are aware the current owner is looking to sell. Our data base of over 10,000 gas stations is continuously being updated, calls are made every day to owners and operators across California. This gives us a unique understanding of what is really available for you to purchase.
Analysis when buying a gas station
Upon inspection of the station we will provide you with our opinion of its business enterprise. You will need to consider its location, is it on a good signalized corner. Is the station on the going to work or going home side of the street ? We look at traffic patterns, access and egress and area demographics. Our team will also visit nearby stations to look at their street pricing and determine the level of competition. We also determine if the current brand is right for the area and review the supply agreement
Once this is completed we can provide you with a financial report which will indicate your cash on cash return. This will of course determine the price we are willing to recommend that you pay.
Due Dilligence when buying a gas station
An improtant part of buying a gas station is the due dilligence. Once you are under contract we will be able to help you through your list of due diligence items. We have existing relationship with specialist escrow agents, testing companies, ABC specialists, insurance companies. This will smooth out the inspectyion stress. If needed we will send you a list of financial institutions to help you fund the purchase.
Ask us to send you a list of Banks currently lending on gas stations
Commissions
As the buyer representative our commissions are paid by the seller. We will work to protect your interests and ensure the station your choose will be financially sound