Dedham Gas Stations

With a population of approximately 25,000 residents, Dedham is a town that has a lot of opportunities for savvy investors but considering that the town is only about 13 miles from Boston, it's a good idea to tap into the revenue that can be earned from commuters. One of the best ways to do this is to invest in a service station; many of the town's residents commute to and from the city, so a dedicated and smart investor can easily make this work for them by selecting a station that's well placed and convenient for the town's residents to refuel.

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Purchasing and Leasing Gas Stations

When you're considering an investment like this, it's important to note that you'll have two potential paths to gas station profits: purchasing the property or merely leasing it. Both methods have their benefits, so let's take a look at some of the advantages.

Purchasing – One of the best features of owning your own service station is that you'll have much more freedom. Not only will you be able to directly manage the property, but you'll also be able to hire management so that you can just focus on the cash flow that the station generates.

Additionally, once you've paid off the loan on the property, you'll really start to profit off of the purchase. With a rented property, you're always just going to be paying rent, and with one of those options, rent can go up, whereas your loan will stay fixed throughout the ownership.

Leasing – One of the drawbacks of purchasing a property of this type is that there's a fairly steep barrier for entry. Not only will you need a sizeable down payment, which can run into the millions, but you'll also need fairly good credit to even be considered for the purchase and financing plan. With a leased space, you'll need far less capital, you won't need amazing credit, and if the property starts to falter, you can exit your lease and try again at a more beneficial location.

Opportunities for Expansion

When you own or lease a commercial investment property like this, you won't make a lot of money off of gas alone. For this reason, most owners opt to use the gas portion of their business to draw in customers for other business investments like convenience stores and car washes. These are excellent cash generators, and you'll even find that this is where your true business lies. In this section, we're going to take a look at expansion opportunities that can be cash flow generators for service station owners.

Convenience Stores

Placing a convenience store at your station is a great way to generate revenue because it doesn't require skilled labor and has a lot of value for commuting motorists. Not only do these work well to provide cigarettes, candy, and coffee to commuters, but convenience stores like this also benefit from foot traffic.

Car Washes

It's amazing how much capital a car wash can generate, especially during the winter, and when there is a lot of pollen in the air. These are also beneficial because many car washes require little human labor, which can increase your profit margins.

Garages

The downside of owning a garage is that you'll need skilled labor, but having said that, the profits earned from having one of these on your property can often outweigh the salaries of your repair people. There is also a lot of overlap due to the fact that people are already bringing their cars to the station.

Locating Your Investment

Dedham has a fairly strong commuter presence, so there are many areas of town where you can make a service station purchase that has the potential to be profitable. That being said, it's a good idea to have a brokerage in your corner that can help you identify the best business opportunities of this type. Give Boston City Properties a call at 617-247-1933, and we can help you find your ideal service station in town.

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gas stations