Wednesday, August 3, 2011

Net Lease Snap Shot: Convenience Stores/Gas Stations

  • Cap rates for c-stores differ more greatly from premium to non premium tenants than any other sub-section. For example, ExxonMobil trades with cap rates around 5.00%, 7-Eleven around 7.00%, and single unit operators from 10-12%. A gap of almost 700 basis points.

  • There was a high focus on only best in class in 2009. Today people are looking at properties with cap rates ranging from 7-8% to 10-12%.

  • Larger corporate operators in 2006 and 07 did a lot of sale-leasebacks, especially Circle K. Recently they have been re-purchasing sites. In general, the same people who were selling years ago are buying again.

  • Environmental regulations (many of which became active in 2010) caused many gas stations to be sold by corporations due to lack of profitability with regulations.
  • Gas Stations are the most polarizing sub-section. They have accelerated depreciation and steady demand. However, environmental regulations and concerns over alternative fuels turn many away.

Read full report here.

2 comments:

  1. Hello,

    Nice Post has been shared here. it was fun visiting your this Post. thanks for sharing such article here. i would like to visiting here again in future too. i did get lots of good points from here.
    brochure holders
    Thanks,

    ReplyDelete
  2. Credit Grade 48 month  36 month  24 month  12 month
    “A+” Credit  .0279 .0376 .0543 .1004
    “A” Credit   .0288 .0389 .0554 .1019
    “B” Credit   .0288 .0389 .0554 .1019
    “C” Credit   .0315 .0465 .0659 .1294
    “D” Credit – up to $3,000 funding  .0441 .0551 .0802 .1638
    “E” Credit – up to $3,000 funding  .0441 .0551 .0802 .1638

    • No application fee
    • One payment upfront (last)
    • Fax lease application, no originals need to be returned
    • Dedicated account manager
    • On line lease scoring

    Visit: http://www.globelend.com/equipment-leasing/

    ReplyDelete