South End Gas Stations
Those that are looking for investment opportunities in one of the various neighborhoods of Boston are often drawn to areas like the South End due to the fact that property prices are considered very reasonable in areas like this. This neighborhood is known for its residential options and some businesses even call the area home, but typically, these businesses are smaller in scale. With a population of 25,000 people, it's also fairly common for the residents of South End to commute to other parts of the city and neighboring areas, which is why savvy investors often opt to invest in gas stations in the area.
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Purchasing and Leasing Gas Stations
So, why invest in a service station? Well, in an area like this one, you can expect to make a neat profit due to the fact that it has a high population, it has commercial businesses, and is also a hub of residential living. As a result, there's a large population of commuters coming in and out of the neighborhood on a daily basis.
Since each of these commuters will need to refuel from time to time, a well-placed service station can be a smart investment that can capitalize on this basic modern need. Not only will you be providing an important resource, but if you're savvy, you can segue your gas sales into sales of other products and services.
Like just about any type of property investment, your success will definitely hinge on proper placement, but if you're able to find a conveniently-placed gas station that can take advantage of traffic patterns, you can be very successful. If you're thinking about this kind of investment, you have options that include an outright purchase or a lease. Here's a look at how these options work:
- Purchasing – If you have the capital and the credit to purchase your service station as well as a bit of patience, you can definitely experience a lot of profitability. Well-placed service stations are a type of commercial investment property that's known for its ability to appreciate, so purchasing a property today can mean a large windfall later on, especially considering how areas throughout Boston are experiencing steady growth.
- Leasing – A reduced level of commitment is one of the prime selling points for leasing a property of this type. Throughout Boston, there are a plethora of service station owners that are looking to lease out their property to the right lessee, which presents a sizeable opportunity. Leasing also means that you won't have to repair and maintain any of the service station equipment like the tanks or the canopy since you're using them for the terms of the lease. Additionally, burdens like mortgages, down payments, and taxes don't exist for a lessee, so this is typically a very simple way of service station investment.
Buying a Service Station with a Convenience Store
Once you've located your new investment opportunity, it's a good idea to ensure that it's going to be profitable, and one of the ways to ensure profit is to have an add-on business like a convenience store. As you might expect, these stores are designed to provide convenience for your customers and purchasing knickknacks, snack, and coffee becomes very easy when your customers can get them at the same place they get their daily gas.
As a rule, only look to invest in properties with add-on businesses attached – gas sales simply won't provide much profitability, so properties with a little extra can help you capitalize faster.
Reasons to Consider this Area for Your Investment
This neighborhood doesn't have a lot of large-scale business opportunities, but smaller-scale properties like service stations can definitely shine here. If you're wondering where to begin, give Boston City Properties a call at 617-247-1933, and we can help you get a grasp on what business opportunities are available in this neighborhood of Boston.
If you’re interested in leasing or buying a gas station in Boston, you should consider focusing your search on the city’s South End neighborhood. With its large residential population and proximity to downtown, it presents many great opportunities for investors and entrepreneurs alike. With that being said, lots of people want to own fuel stations in this part of the city, and the best opportunities tend to fly off of the market quickly. Therefore, it is crucial to have access to accurate and timely information. You can get that and more right now and for free by signing up with Boston City Properties. We’ll give you immediate access to our searchable Massachusetts commercial property listings so you can get a leg up on the competition.
About the Neighborhood
Bordered by Chinatown, Back Bay and Roxbury, this neighborhood had a population of around 42,800 at the time of the 2010 U.S. Census. Covered by the 02116 zip code, it is home to thousands of people who commute to other parts of the city every day—and many of them do so by car. Therefore, fuel stations in this neighborhood typically perform well. Boston City Properties has commercial property agents in this neighborhood, and we’ll refer you to one whenever you’re ready.
What to Look For
Don’t get tricked into thinking that simply owning a fuel station in Boston is a guaranteed path toward strong profits and sales. Not all properties are worth it, and it pays to know what to look for. A few examples include:
- Size – Fuel stations in densely populated places like Boston tend to be compact. However, avoid properties that lack sizable convenience markets because you will miss out on many opportunities for expanding and growing your business.
- Location – The best stations are those that are located along routes that are heavily traveled by commuters. In this neighborhood, you can’t go wrong by leasing or buying a property that is along a bustling thoroughfare like Massachusetts Avenue, Tremont Street or Columbus Avenue. Properties that are close to freeway exits are excellent options as well.
- Appearance – You should either be prepared to spruce up a rundown station or aim to buy one that is already in good aesthetic condition. You can be sure that any station that you consider will face nearby competition—and much of it will offer much more welcoming environments. If you want to generate loyal customers from local residents, you want to procure a station that seems more like a destination.
Considerations to Make
Owning a fuel station—even in a busy neighborhood like this one—is no guarantee of long-term success. Many considerations should be made during the search to ensure that whatever you get will help you to achieve your goals. Some examples of these include:
- What’s included? – Will you buy a property that includes the land and the building or just the building? Unless you are prepared to invest vast sums into bringing the place up to speed, seek fuel stations that already include the equipment that you’ll need to open for business quickly.
- Financial records – How likely is a given station to generate strong profits for you? The only way to gain a decent understanding is by requesting financial records from the seller. Ask for at least two years’ worth, and have a CPA analyze them to determine whether you will be making a sound investment or not.
- Environmental issues – Since fuel stations are subject to numerous local, state and federal environmental regulations, it is crucial to have an environmental survey performed if you will become the owner of the land. Otherwise, you could face massive penalties and fines down the road, and these of course could cut significantly into any profits that you are hoping to generate through your business.
- Lease and financing options – Don’t start your search before figuring out precisely how you will pay for it. If you are going to buy, obtain a preapproval from a lender. Definitely look into loans that are backed by the Small Business Administration if you will be operating the business as well. If leasing, read terms in listings carefully to zero in on opportunities that suit your various needs.
How Boston City Properties Can Help
Given what steady money makers they tend to be, it’s easy to see why business owners and investors alike are drawn to owning South End gas stations. If you are in the market for one, then, you can expect to face a lot of competition. Sign up to search our listings now, and you’ll have a much better chance of finding what you need fast. When you’re ready, contact us for a referral to a commercial real estate agent in this neighborhood who can assist you further. For more info, call Boston City Properties today.
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