Leather District Gas Stations

Situated near to Boston's South Street is the neighborhood of Leather District. This part of the city has parts of Chinatown in it and is bordered by the Bass River. With key roadways such as Atlantic Avenue, Purchase Street, and Summer Street all falling within this neighborhood, it's easy to see why Leather District has become a point of interest for investors. In fact, with so much consistent traffic going to and through the area, this is definitely a worthwhile neighborhood in which to invest in a gas station.

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Purchasing and Leasing Gas Stations

Wondering if you should purchase or lease a station in this part of town? Frankly put, which type of acquisition you pick is going to definitely depend on your own investment style. If you're looking for a quick profit, then you can lease the property, but if you're willing to put in the work and are patient, then purchasing a service station can be very lucrative and be a rewarding investment.

Purchasing – As mentioned, this type of investment takes time and patience, but if you stick with it, this is a great way to earn a lot of money in five to 10 years time. One of the first considerations that you'll have to take into account is the fact that a purchase is going to almost always require strong financing; service stations cost millions of dollars, and it can even cost millions to just pay the down payment on the property. Also, you'll need fairly strong credit for one of these investments.

That being said, with a purchase, you'll have a high level of freedom that leasing just doesn't allow. For example, you'll be able to create an independent gas station brand or you can opt to become a franchisee for one of the preexisting brands. Additionally, you'll be able to choose suppliers, promotions that you want to run, and the business hours of your service station.

Leasing – With a lease, you're just renting the space from an existing owner, and as a result, you most likely won't have to worry about costs like mortgages, insurance, or capital gains. You simply won't need nearly as much credit or on-hand capital for this style of ownership, and if the property flounders, you won't be nearly as invested.

Buying a Service Station with a Convenience Store

While you technically can make a profit off of gas sales, you'll have to have an absolutely optimal placement with a near-constant stream of business. This is due to the fact that, for every gas sale, much of the profit goes to other sources like the refineries, the delivery companies, the federal government, and the oil companies. At the end of the day, you're only bringing home about one percent of the gas sales as profit.

For this reason, it's a great idea to invest in a property with a convenience store add-on. These businesses have a huge level of overlap with the gas sale business because commuters and travelers often want to purchase snacks, lottery tickets, and coffee when they refuel, and a convenience store makes these easy to acquire. In addition to this, commuters that pay inside will also purchase items on impulse, which can also make the property more profitable.

Reasons to Consider this Area for Your Investment

This part of the Boston area is definitely fairly popular and provides more than a few opportunities to capitalize. This is a very residential area of town, so you can easily profit off of the commute to and from work. With that said, it's a good idea to get to know the opportunities in an area before you invest, and Boston City Properties has listings of the various investment properties throughout the Boston area, so give us a call today at 617-247-1933.

If you want to buy or lease a gas station in downtown Boston, you should consider focusing your efforts on its Leather District neighborhood. Although this is a very small slice of the city, it is a great area for finding profitable fuel stations for sale or for lease. In fact, stations here do so well that investors are typically lined up to buy or lease them when they hit the market. Sign up with Boston City Properties for the best odds of securing the property that you need for a great price. We’ll give you access to our searchable commercial real estate listings and refer you to a local agent when you’re ready.

About the Neighborhood

Sometimes referred to simply as the “LD,” this neighborhood occupies the part of downtown that used to be dominated by the once-bustling leather industry. Situated between Chinatown and the Financial District, its borders roughly consist of Kneeland Street on one end and Dewey Square on the other. Mixed-use developments dominate the neighborhood, which stretches over about nine blocks, and many local residents drive elsewhere for work or school, so fuel stations here tend to do well.

What to Look For

Owning or leasing a fuel station—even in a bustling Boston neighborhood—does not guarantee that you will draw in decent profits. It is important to be discerning and to know what to look for. The commercial agent that we refer you to can make a huge difference in this regard. Here are a few examples of what to look for:

• Size – With your budget in mind, try to acquire the largest station that you can afford to buy or lease. A roomy retail store is a major plus, and it helps enormously to have as many working pumps as possible.
• Location – Seek out fuel stations that are located on busy roads that offer quick, easy access to commuters. If possible, find one that is within close proximity of a major freeway exit. Watch out for neighborhoods that already have several stations because excessive competition can make it tough to succeed.
• Appearance – Aim to acquire a station that is in as close to “turnkey” condition as possible. This includes being in sound structural shape and having pleasing and welcoming aesthetics. That way, you won’t have to pour a lot of work and money into making the place appealing to customers—and you will be better able to start generating profits quickly.

Considerations to Make

Buying a fuel station is tricky anywhere, and it’s especially complicated in a big city like Boston. Your commercial real estate agent can help you to navigate the many issues that are sure to pop up, including the following:

• Lease and financing options – Don’t start searching for fuel stations in earnest before getting your finances in order for the move. If you will be buying, shop around with lenders beforehand to arrange the best financing possible, and be sure to look into loans that are backed by the Small Business Administration.
• Financial records – Even if you find a great fuel station in a promising location, don’t assume that it will generate the profits that you need. Insist on at least two years’ worth of financial documents from the current owners, and have a qualified CPA or accountant analyze them on your behalf. They can then give you a better idea about how likely you are to meet your objectives with any given property.
• What’s included? – Your agent can help you to decide whether it’s better for you to buy the land and building or to just buy the building. Since you probably want to get up and running quickly, have inspections performed to confirm that the property includes everything that you will need. Otherwise, be prepared to invest money right away into getting the place into operable condition.
• Environmental issues – If buying, don’t commit to anything without having a thorough environmental survey performed. Should you inadvertently buy a property with underlying environmental problems, you could be assessed thousands of dollars in penalties and fines for violating local, state or federal regulations. Needless to say, this can cut significantly into any anticipated profits.

How Boston City Properties Can Help

At this very moment, the perfect Leather District gas station may be for sale or for lease. The best way to find out is by signing up for access to Boston City Properties’ constantly updated commercial real estate listings. In no time, you will be brought up to speed about current availability of fuel stations in this neighborhood, and you can search for them across all neighborhoods in the city too. Don’t forget to contact us for a referral to an experienced commercial real estate professional in this part of the city. For more info, give us a call today.

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gas stations