Longwood Gas Stations
Also known as the LMA, which stands for the Longwood Medical Area, this neighborhood of Boston is well-known for its association with Harvard Medical School, and as a result, is also one of the areas of Boston with the highest cost of living. That being said, there's a strong employee population in the area, and based on projected estimates, an additional 13,000 employees are expected to come into the area within the next 15 years. As a result, there's going to be a higher need to support commuters, and as a result, the gas station is set to become a very lucrative commercial investment type for investors.
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Purchasing and Leasing Gas Stations
If you're going to invest in this commercial business, then you'll have to either:
Purchase the property – Looking to diversify your portfolio? An investment in a purchased service station is an excellent way to do this, especially considering that these properties require both good credit and a significant amount of capital. With a purchased service station, you'll also have a steady cash flow generator, and the only things that can hamper the performance of your station are poor traffic patterns or corporate service station competitors in the vicinity.
These properties also stand out due to the fact that they can make for good retirement nest eggs. When you're ready to retire, you can simply sell the property at a profit or lease it out so that you can receive steady cash during your twilight years.
Lease the property – When you buy, you'll have to deal with a down payment, insurance, and capital gains taxes to name a few financial burdens, but if you opt to lease from an existing owner, you won't have to consider any of these costs. In fact, leasing is a great way to make a profit sooner because you won't be worrying about paying back a mortgage and capitalization rates.
Additionally, if the profits on the property aren't stellar, you can always opt to simply wait out the term of the lease and try again somewhere else.
Buying a Service Station with a Convenience Store
If you're going to turn a profit, you should consider purchasing or leasing a preexisting service station that already has a convenience store on-premise. It's important to understand that gas sales won't necessarily help you capitalize because of the fact that every gallon of gas that you sell goes to various different places. In fact, it's hard to make a profit of much more than one or two percent of the sale as the service station owner.
With a convenience store, you can use your gas sales to segue into more direct sales because commuters and motorists love to use convenience stores to purchase:
- Snacks
- Coffee
- Drinks
- Newspapers
- Lottery Tickets
Each of these items can be sold at a significant profit, and in many cases, a commuter will buy one or more of these products on a daily basis. Also, customers that come in to pay or use the facilities will often spend money in an attached grocery store, and you can even see significant sales from customers that come into your establishment on foot as well.
Reasons to Consider this Area for Your Investment
LMA definitely has more than a few opportunities for commercial investors that want to capitalize, and with a working population that's set to grow, this definitely is an area to keep an eye on. If you're not sure where to start, give us at Boston City Properties a call at 617-247-1933, and we can show you some of the service station opportunities in this up-and-coming area.
With its prime location and population of educators, medical professionals, researchers and students, Boston’s Longwood Medical Area is a great place to look for profitable gas stations for sale or for lease. The LMA, as it is often referred, has a very competitive commercial real estate market, however, so it’s crucial to have all of the help that you can get. To that end, you can’t go wrong by signing up with Boston City Properties. It only takes a second; in return, you’ll get immediate, free, unlimited access to our huge online database of searchable commercial real estate listings. We also have experienced commercial property experts in this neighborhood and can refer you to one at your convenience.
About the Neighborhood
The city’s premier medical and academic area, the LMA is an excellent place to find profit-generating fuel stations. Bordered by Mission Hill, Audubon Circle, Brookline and Fenway-Kenmore, the neighborhood is home to thousands; every day, thousands more pour in to work or attend school in the area, so local fuel stations tend to be busy throughout the year. Since the local market is so competitive, however, it pays to have the help of a local commercial agent who understands its intricacies. We can refer you to one whenever you’re ready.
What to Look For
Do you know how to identify fuel stations that are most likely to generate strong profits? Some things to keep in mind while searching for one include:
- Appearance – Unless you leave room in your budget for renovating the property that you acquire, stick with fuel stations that are already in decent shape not just in terms of functionality but in terms of aesthetics too. Much of your potential profits will come from the retail market that’s attached to the station, and customers aren’t likely to come in if the premises are unwelcoming or unpleasant.
- Size – Fuel stations with lots of pumps are better because this reduces the odds of long, frustrating lines that can drive away business. Additionally, choose a property with a decent-sized market. That way, you can offer a better selection of products for locals and increase your odds of generating strong profits.
- Location – Assess the local area for competition to ensure that you won’t face excessive amounts of it. Try to buy or lease a property that is situated directly on a major road with close or even direct access to freeways. People aren’t going to go out of their way to patronize your store, so make it as easy as possible.
Considerations to Make
A lot of work goes into identifying fuel stations that will deliver strong returns on an initial investment. Boston City Properties will connect you with a local commercial agent who knows the process well. For now, here are some of the considerations that you’ll need to make as you proceed:
- Financial records – In addition to ensuring that the property itself is in good shape, it’s crucial to assess financial records from the station to determine how well it has performed historically. Ask for at least two years’ worth of financial documents, and hire a skilled CPA to look them over for you.
- Lease and financing options – Figure out how you will finance this investment before looking for stations in earnest. If you will be leasing, you may save some money by assuming an existing lease, but then you will be at the mercy of those terms. If you are buying, check into Small Business Administration loans, and have a preapproval in hand.
- What’s included? – Avoid unpleasant surprises by having the entire property inspected. Make sure that the pumps and everything else are in good working order. If possible, seek out properties that include extras like car washes because these can be even better money-makers. Keep in mind that if you’re buying, some listings are for both the land and building while others are for the building alone.
- Environmental issues – Fuel stations are subject to a wide range of environmental regulations. If you will be buying the property, have an environmental survey performed to avoid ending up with a big, expensive mess. Never assume that the property has been properly cared for, and remember that the buck will stop with you if you buy the place.
How Boston City Properties Can Help
Getting up-to-the-second information regarding gas stations for sale and for lease in Longwood Medical Area is as simple as connecting with Boston City Properties. When you complete and submit the easy signup form, we’ll give you instant, free access to our commercial real estate listings. As an added bonus, we will refer you to a commercial real estate agent in this neighborhood who can assist you further. For more information, give us a call.
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