Theatre District Gas Stations
Despite its name, the Theater District of Boston is a neighborhood that is not only known for the arts but known for its large office towers as well. This small section of the city is also well known for its parking options, which is why many of the visitors to the neighborhood drive. For this reason, one of the more stable investments that you can make in this neighborhood is a gas station. Gas stations serve as a unique opportunity for a commercial investment business in this area because of the fact that there so many daily commuters in the area to tap into.
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Purchasing and Leasing Gas Stations
With so many large-scale businesses and performing arts theaters occupying this area of Boston, it's fairly clear that a service station can be a valuable asset for an investor. Before you invest, always consider if the location has:
- Access to traffic patterns
- Well-kept tanks, pumps, and canopies
- Add-on businesses
- An easy to find location
If the location has all of these features, you'll usually have the option to:
Purchase the property – If the property is for sale, and you have the capital and the credit to have it financed, then this is a great way to profit. Also, with a service station purchase, you'll have opportunities to express complete control over the business side of things, which means that you'll be able to decide on promotions, suppliers, and the hours of operation of your station.
Additionally, this is a major asset that you can borrow against and use to build exceptional equity. Also, when it's time to retire, you can sell or lease the property for a sizeable nest egg or monthly cash flow.
Lease the property from an existing owner – When you opt to simply become a lessee and lease the property from an existing owner, there is simply less of a commitment. Not only will you not have to pay a monthly mortgage to a lender, but you'll also have the ability to end the lease when you find another opportunity or when you're just ready to get out of the business.
Leasing is also a great way to gauge a station's performance before you buy; if it's profiting during the lease period, you can simply opt to make the full purchase.
Buying a Service Station with a Convenience Store
As mentioned, it's a good idea to find properties that have preexisting add-on businesses because these businesses can help you capitalize faster. This is due to the fact that gas sales actually end up going into many different hands including the refineries, the suppliers, the delivery companies, and the federal government. Once everyone has taken their cut, you can only really expect about a one percent profit from oil sales.
Having a profitable add-on thusly becomes a near necessity. Convenience stores are one of the more lucrative types of add-on businesses, and there's definitely some overlap when it comes to gas sales and convenience store sales, so you should be able to convert your gas customers with ease.
Reasons to Consider this Area for Your Investment
This district of Boston is ever-growing, and with a preponderance of large office buildings and a thriving art presence, it's easy to see how a service station owner in this neighborhood can profit. With that said, it's always a good idea to have a good support system, and a brokerage like Boston City Properties can really help you find the right properties for your needs. Give us a call today at 617-247-1933.
If you are thinking about leasing or buying a gas station in Boston’s bustling Theatre District, you are in for a bit of an uphill battle. With its prime downtown location and proximity to bustling commercial districts, it is understandable to want to own or lease a profit-generating fuel station here. However, lots of other people want to too, so competition is fierce. Sign up with Boston City Properties now for up-to-the-second information regarding the availability of fuel stations for sale and lease in this neighborhood. We have commercial property agents here too, and we’ll refer you to one whenever you are ready.
About the Neighborhood
Although this neighborhood is best known for being home to Boston’s best theaters, it is also in the heart of the city and close to its most important business districts. Neighborhoods around it offer hundreds of thousands of square feet of Class A office space, so commuter traffic is heavy and fuel stations do brisk business. Very little space is available for fuel stations, but some of the best opportunities are likely to be found along busy roads like Tremont Street, Huntington Avenue and Boylston Street.
What to Look For
While we can refer you to an agent in this neighborhood who can help you to identify promising options, it pays to know some of the basics yourself. Here are a few of the things to look for when seeking profitable fuel stations in this neighborhood:
- Appearance – Avoid properties that are in dire need of renovation, or be prepared to invest money in fixing them up. In this neighborhood, you can’t hope for loyal, consistent business without offering a clean, pleasant, welcoming environment for customers.
- Size – Some of your most consistent profits will come from selling items in the attached convenience market, so seek properties with spacious amounts of retail square footage. That way, you will always be able to play around with different offerings to see what the most profitable products are. Customers will also appreciate having more space.
- Location – This neighborhood is so compact and busy that virtually any location would work well for a fuel station. However, if you can snag a property that is located on a busy intersection or one that is close to a freeway exit, definitely go for it. While you are at it, assess local competition to ensure that you won’t have to share business with too many other stations.
Considerations to Make
Even if you find a fuel station that ticks all of the above boxes, additional vetting must be done to ensure that you get a strong return for your investment. The agent that we refer you to can help enormously in this regard. In the meantime, here are some considerations to keep in mind:
- Lease and financing options – Get your financing squared away before you start looking at properties in earnest. If you will be leasing, ready listings carefully because lease terms are often noted. If you are going to buy, check into loans that are backed by the Small Business Administration if you will operate the business too.
- What’s included? – At the very least, get a station with a decent-sized convenience store. If possible, buy or lease one that includes extras like a car wash or fast-food restaurant. Either way, have property inspections performed to ensure that everything that you’ll need to operate the business is in good working order.
- Financial records – Part of properly vetting a fuel station is checking into how it has performed in the past. Request at least two years’ worth of financial records from the seller, and have them analyzed by an experienced accountant or CPA. This will clue you in to how easy or difficult it will be to meet your financial objectives as the owner of the business.
- Environmental issues – Proceed with caution if you will be buying the land and the building. As the owner of the land, you will be on the hook for any underlying environmental problems, so it is vital to have an environmental survey performed before committing to anything. Otherwise, you could be slapped with huge fines that will make it all the more difficult to stay in the black.
How Boston City Properties Can Help
When it comes to buying or leasing a gas station in Boston’s Theatre District, you can’t go wrong by connecting with Boston City Properties. That’s because we’ll give you unlimited access to our commercial property listings right now when you complete the easy signup form. In no time, you will be able to see if any promising options are currently available. If so, give us a call for a referral to a local agent who can guide you through the process. Call us today for more information.
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