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.
More info at GlobeSt:
Car Washes Are Outshining Their Net Lease Competitors