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Car Washes Are Outshining Their Net Lease Competitors

Car Washes Are Outshining Their Net Lease Competitors

Interest in the property type is gaining, and for good reason, says Jeff Lefko of Hanley Investment Group.

Investor demand for service-based, internet-resistant retail has created a new class of net lease investments: car washes. The single-tenant net-leased car wash industry has emerged as a viable and sustainable alternative to common net-leased retail properties for private investors. Since January 2018, Hanley Investment Group’s senior associate Jeff Lefko who, along with EVP Bill Asher, has completed the sale of over $15 million in single-tenant car wash properties across the country, accounting for nearly 25% of all car wash properties sold since March 2017. The newfound interest represents a change for the category.

Only two single-tenant net-leased car wash properties in the US were sold to individual buyers in a five-year period between March 2012 and March 2017, according to CoStar. However, from March 2017 to March 2018, 12 single-tenant net-leased car wash properties were sold to private buyers, marking a 450% increase in single-tenant car wash sales, notes Lefko.

GlobeSt

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Car Washes Are Outshining Their Net Lease Competitors