Danvers Gas Stations

If you're looking to invest in property, the town of Danvers is a fairly strong market, but for those that are looking for a business venture that can provide a lot of cash flow in a town like this, then it's hard to go wrong with a gas station. It's important to remember, Danvers is only about 17 miles from Boston, so this is a community rich with commuters that travel to the city on a daily basis, which means that there is just a lot of money to be made off of motorists here. That being said, it's important for you to take the right steps when either purchasing or leasing these types of stations so that you can make the kind of money that you'd like to make.

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Purchasing and Leasing Gas Stations

When you're considering a service station as an investment property, you'll have the option to either rent or purchase the station outright. Which type of choice you pick will greatly influence the overall experience, so let's take a look at each:

Purchasing – When you're considering a service station, it's important to understand that purchasing will require a significant cash buy-in. In most situations, service stations will cost upwards of a million dollars and will take a bit of work. That being said, with a purchase, you can generate sizeable cash flow as well by leasing parts of your station to larger companies or individuals looking to open up garages, convenience stores, or car washes.

Also, when you own the station, you'll find that you'll have a bit more freedom; you won't have a landlord that will jack up the price of your rent, and you'll also be able to lease out the whole station when you don't want to work on the day-to-day processes of running a station anymore.

Leasing – When you opt to rent your station, it can be freeing, but you'll also have to understand that you'll have slightly less freedom. The rent can increase, and the landlord can choose not to renew your lease in the future. With that in consideration, there is a significantly lower price associated with leasing. In fact, whereas you'd spend more than a million on a decently-placed station, leasing will probably cost about a third of that.

With a lease, you won't have to worry about environmental costs, and leasing in an optimal location is just going to be easier with a leased station. Also, when purchasing a property like this, it's going to take a while to capitalize and make a return, but with a leased property, you can start making a profit much sooner.

Opportunities for Expansion

When you own a service station, as mentioned, you can lease space out for other business owners to create businesses on premise. That being said, you can elicit the expansions yourself so that you can make a more sizeable profit. The first thing that you should note is that it's very difficult to make a sizeable profit off of gas alone; simply put, you'll be making about one percent of every gas sale you make. Instead, gas can serve as a means of enticing your customers to come in and spend money at one of your associated businesses.

Not only can you build and maintain your own convenience store, which more than one customer will take advantage of without buying gas at all, but other expansions like garages and car washes can be equally beneficial for generating positive cash flow.

Locating Your Investment

This particular town is very car-friendly, and while there are more than a few mass transit options, seizing on the opportunities presented by Boston car commuters can be a real way to generate excellent revenue. That being said, it's a good idea to have someone in your corner to help you find the service station that's best for you, and Boston City Properties has listings that can help you identify your next business opportunity. Call us today at 617-247-1933.

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gas stations