Allston Gas Stations

One thing is for sure: Boston is a market that has been consistently growing over the past several years. As a result, all of its constituent neighborhoods have been peaking the interests of many of the property investors in the state. Allston, which has a population of over 29,000 people, is one of these neighborhoods that has been steadily growing. While there are residential options throughout the neighborhood, commercial investment can sometimes be the more lucrative investment option, and if you're savvy, one of the best options for commercial investment can be the simple gas station.

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Purchasing and Leasing Gas Stations

Why purchase a service station? Well, in an urban area like Allston, there is a large daily influx of commuters that commute to just about every area of the city, and a good service station is an excellent way to capitalize on this traffic. When you're investing in a modern service station, you'll have the option to purchase the station outright or lease it from an owner. Both of these methods of establishing your service station can have its share of advantages, so let's give them a look:

• Purchasing – When you opt to purchase your service station, of course, you can expect to require a much larger initial pay-in. Purchasing one of these will require very good credit and you can expect to spend hundreds of thousands if not millions on the initial down payment of your mortgage.

Even with these financial considerations, owning definitely has its advantages. Not only can you use your service station to build equity when you're looking to expand, but when you're ready to make some extra cash, you can opt to lease the space in the station for expansion businesses like convenience stores and garages.

Additionally, when you're ready to retire, you will retire comfortably because you can opt to outright sell the station that you've purchased for a large sum of cash or you can lease the entire property.

• Leasing – Leasing is a nice and safe option for a prospective gas station investor. Not only will you not need as high of a credit score when you're leasing a property, but the initial buy-in amount will be much lower as well. Additionally, leasing a station is also a great way for a prospective buyer to gauge the station's performance before the commitment of a purchase.

Additionally, for those that aren't looking to eventually purchase, leasing is just an easier way to run a gas station. If something happens that could devalue your station such as a larger corporate service station appearing or road work, then you aren't nearly as invested in the property and you can move to another opportunity. Buying a Service Station with a Convenience Store.

While it may seem counterintuitive that you'll need additional businesses in order to make a profit off of gas, it's nevertheless true. When you're in the gas retail business, much of the profit off of the gas sales actually goes to a plethora of other sources including the refineries, the delivery companies, and Uncle Sam. As a result, you'll only see a profit of about one percent of each gas sale.

As a result, most service station owners opt to open attached businesses in their service stations. These can include garages, grills, car washes, or auto parts shops, but the most profitable of these businesses is the convenience store. In a neighborhood like this one, commuters not only need gas in the morning and the evenings, but they are also often looking for food and other items like lottery tickets as well, and a convenience store can provide these types of items.

Reasons to Consider this Area for Your Investment

As a Boston neighborhood, this is a great place to invest because it has an urban environment with a high population of people and there are more than a few opportunities for a service station investment. Wondering where to begin? At Boston City Properties, we have a firm grasp on the business opportunities throughout the Boston area, so give us a call today at 617-247-1933.

Allston Gas Stations for Sale and Lease

If you’d like to invest in a business that doesn’t tend to be affected by the economy, purchasing or leasing a gas station is a good option to consider. In the city of Boston, the right station can produce incredible, consistent returns for a savvy investor—and that is undoubtedly true regarding owning a station in its Allston neighborhood. When it comes to leasing or buying a fuel station in the city, however, you are going to need all of the help that you can get. Read on to learn how Boston City Properties can help.

About the Neighborhood

Situated directly adjacent to Boston’s Brighton neighborhood, this neighborhood had a population of around 48,000 people at the time of the 2010 U.S. Census. It is also bordered by Fenway-Kenmore, Brookline and Cambridge, and it is covered by the 02134 zip code. The local commercial real estate market isn’t quite as competitive in some parts of the city, but buying a fuel station here can be difficult.

What to Look For

When you connect with Boston City Properties, our team can help you to identify promising fuel stations in this neighborhood. In the meantime, here are a few things to look for when seeking to buy or lease a fuel station in Boston:

• Location – Ideally, the station that you acquire should be in a high-traffic area that is easily accessible to major roads and freeways. If you can also secure a location that doesn’t face a lot of immediate local competition, better still.
• Appearance – The right station will appear clean and welcoming from the street. It will include clear, legible signage, canopies to shield customers from inclement weather and a bright, neatly stocked market. Keep in mind that people don’t typically stop only for fuel; by investing in a station that is aesthetically pleasing, you won’t have to invest huge amounts of time and money to get it that way after purchasing or leasing it.
• Size – The more pumps that your station has, the better. Adding pumps costs a lot of money, so try to lease or buy a station that already has a good number of them. Similarly, the market or convenience store portion of the station should be roomy. That way, you can stock it with a wider variety of products, and that will help you to boost profits even more. In fact, the store is where you are likely to make most of your money.

Considerations to Make

If you have never owned or leased a fuel station in the city of Boston before, you’re in for some surprises. Keep these points in mind to ensure that you secure a station that truly suits your needs:

• Environmental issues – The biggest thorn in any fuel station owner’s side is maintaining compliance with local, state and federal environmental regulations. Sometimes, owners try to unload stations with underlying environmental problems, so always pay to have an environmental survey performed before making anything official.
• What’s included? – Never assume that everything is included in the purchase or lease of a fuel station. You might get a station with working pumps and a cash register and little else. Then again, the premises might include extras like a car wash or even a fast-food restaurant. Find out whether all of the existing features are included or if you will have to make improvements to the station yourself.
• Lease and financing terms – Will you be able to negotiate terms for a new lease, or will you have to accept the terms of the previous lease? If the building and property are owned by the same company, you’re more likely to have some wiggle room. In the event that you are buying a station, get your financing square away beforehand. You might qualify for a Small Business Administration loan or another option that could make it easier to proceed.
• Scour financial records – Finally, never take the previous owner at their word about how well the station has performed in the past. Unfortunately, fuel stations are largely cash businesses, so it’s easy for people to gloss over how profitable they are. Insist on seeing at least two years’ worth of financials for the location, and have them looked over by a skilled CPA before moving forward.

How Boston City Properties Can Help

The first step in buying or leasing a gas station in Allston is checking current availability. Do that quickly and easily by signing up with Boston City Properties. Sign up using the easy form for instant, free, unlimited access to our searchable MA commercial real estate listings. In an instant, you can find out whether any stations are currently for sale or for lease in this thriving Boston neighborhood. We can also refer you to a local commercial real estate agent whenever you’re ready, so contact us today.

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gas stations