Dorchester Gas Stations
Dorchester, which is an area within Boston that is about six square miles, is one of the most historic communities in this area of the state. In this area alone, there are over 92,000 residents, which makes it an ideal location to invest. In fact, if you are interested in investing in a service station in the area, Interstate 93 runs straight through the area as well as several smaller state routes.
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Purchasing and Leasing Gas Stations
If you are interested in investing in a service station in the area, you are going to need to decide whether you are ready to go in with a purchase offer or you prefer to lease the property from the owner. Both of these options can be great for an investor, but depending on your needs, one may be better than the other for your portfolio.
Purchasing a Station
- You set the promotions that you run at your location based on the neighborhood and the customer's needs.
- You can expand your business and decide whether to run the expansion yourself or lease it out to another interested party.
- Once you pay off the mortgage, the profit that you make for the location will increase greatly.
- You will be able to select the suppliers for your location instead of adhering to corporate brands.
- You can decide the hours that the station will be open, which may mean that you will work longer hours, but it may also mean that your station closes early on Sundays.
Leasing a Station
The initial commitment is going to be far less when you lease property because you will not need a large down payment or to pay taxes on the property. You will not need to pay a large monthly mortgage, the rental rate that you agree on with the owner is what you will pay, though that can increase if you renew the lease. The equipment that you need to manage the station is the responsibility of the owner, so if your tanks need to be replaced, it will not be an additional expense for you. If you feel that the station is not performing as well as it should, you can always break the lease or simply move on when the terms of the lease expire. Buying a Service Station with a Convenience Store
When you purchase a gas station with a convenience store, you will be able to draw in more customers, which means that your profits will increase as well. When you sell gas, you barely make a profit, so it is important to have things like coffee, cold drinks, and snacks that motorists may like to have on the road. Try to cater to the breakfast and lunch crowd to increase your sales, and if you have the space for a grill, you should consider it as well.
Reasons to Consider this Area for Your Investment
When you are considering your investment, the first thing that you need to do is consider the neighborhood or the area that you want to invest in. Dorchester is a very populous community within the city, so there are quite a few smaller neighborhoods or squares that you can consider. Some of the sub-neighborhoods in the area include:
- Harbor Point
- Uphams Corner
- Jones Hill
- Savin Hill
- Meeting House Hill
- Mount Bowdoin
- Four Corners
- Field Corners
- Franklin Field
- Codman Square
- Popes Hill
- Peabody Square
- Port Norfolk
- Neponset
- Ashmont
- Adams Village
- Cedar Grove
- Lower Mills
If you are looking to invest in a business district in the area, then you should consider Uphams Corner, Fields Corner, and Codman Square. The northern part of the area has a larger density when it comes to population, which means there are more high-rise apartment buildings in the area. The southern part of the area is more residential with a lot of single-family homes and townhouses. For help narrowing down your search for profitable investment opportunities in the area contact Boston City properties at 617-247-1933.
The city of Boston abounds with exciting commercial real estate opportunities for investors. If you are looking to break into the world of gas stations and want to buy or lease one in Dorchester, Boston’s largest neighborhood, you’re going to need all of the help that you can get. Properly operated stations can generate consistent, strong sales and profits, so they are in strong demand. Sign up today with Boston City Properties for access to our constantly updated database of searchable MA commercial real estate listings. Later, we can also connect you with a skilled commercial real estate agent in this neighborhood.
About the Neighborhood
With a population of more than 100,000 at the time of the last U.S. Census, this neighborhood is the largest in the city. Covered by the 02121 zip code, it is bordered by numerous communities and neighborhoods, including Roxbury, Hyde Park, Quincy, Jamaica Plain, South End and South Boston. It is made up of large residential neighborhoods that are interspersed with commercial districts, so fuel stations here tend to do well. We can refer you to an agent who can help you to identify promising options in areas like Codman Square, Fields Corner and Uphams Corner.
What to Look For
While there are plenty of fuel stations in this neighborhood, not all of them are going to get you the profits that you need. Some things to look for when browsing our listings for fuel stations for sale and lease include:
- Location – Seek out fuel stations that are on busy thoroughfares that are popular with commuters. This is a great neighborhood for that because so many live here and work downtown. A busy intersection is even better, and a station that is near an interstate is better still. Beware of local competition as well.
- Size – You may pay less for a station with a few pumps and a small attendant stand, but you will miss out on lots of income streams too. Instead, choose a station that includes a large convenience mart, if possible. That way, you will have many other ways to generate sales. The more pumps the better too, and make sure that they are all operable.
- Appearance – Investors sometimes erroneously think that aesthetics aren’t important when it comes to fuel stations. However, with so much local competition, fuel stations in the city need to be welcoming if they’re going to make it. Unless you can afford to pour tons of money into renovating the place, look for properties that are already in good shape.
Considerations to Make
Buying a fuel station in a busy city like Boston is no easy feat. We will refer you to a local commercial real estate agent who understands the ins and outs of such transactions. In the meantime, here are some factors to keep in mind:
- What’s included? – Find out if the land and building are owned by the same entity because this can affect a number of things. Make sure that everything that is on the property is in good working order. Beware of deals where extras like car washes are eliminated because they can affect profitability.
- Lease and financing options – Your agent can refer you to lenders who can assist you with financing if you want to buy a fuel station; Small Business Administration loans are among the most affordable options. If you need to lease, seek out a deal where you can negotiate the terms beforehand. Oftentimes, legacy leases are in place and leave no wiggle room for new owners.
- Financial records – Even if a fuel station is on a busy street and is in good shape, profitability is never guaranteed. Never take the seller’s word for it, either. Obtain copies of at least two years’ worth of financial records, and have them analyzed by a qualified accountant or CPA. That way, you can go into the deal knowing precisely what you’re getting.
- Environmental issues – Fuel stations are subject to a dizzying array of local, state and federal environmental regulations. Have an environmental survey performed to ensure that the previous owner isn’t trying to sweep underlying problems under the rug. Otherwise, you might have a rude awakening after taking ownership.
How Boston City Properties Can Help
Buying or leasing a Dorchester gas station can be pretty complicated. At any given moment, at least a few of these properties are likely to be up for grabs, and the best way to find out is by signing up for free access to Boston City Properties’ searchable commercial real estate listings. You can then check current availability for properties that suit your needs. Later, contact us to be referred to a commercial real estate expert in this neighborhood. With their assistance, you will be on your way to owning a fuel station in no time. For more info, give us a call today.
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