Leasing out a lube shop

[MEP001]

My business partner and I are looking at a self-serve car wash on land with a three bay lube center, and the entire property is for sale. We are not interested in running the lube center and would lease it out. I'm hoping someone here might have a rough idea what we could get for it, or can point me to a resource to find out.

 

[HeyVern]

A good commercial realtor in the area should be able to give you a good idea and help find a tennant.

 

[MEP001]

I'd like to find out what it could or should rent for before we even bother looking into buying the property.

 

[HeyVern]

and a good local realtor can give you a good idea what it would lease for.

 

[Overachiever]

There is a 2 bay Greasemonkey near me that is for sale (also next door to a self service car wash and used to be under the same owner), it's leasing for 30k a year with a 2.5% annual rent increase built into the lease.

 

[Waxman]

I'd like to find out what it could or should rent for before we even bother looking into buying the property.

And are all utilities separated out for the lube shop?

 

[jfmoran]

My business partner and I are looking at a self-serve car wash on land with a three bay lube center, and the entire property is for sale. We are not interested in running the lube center and would lease it out. I'm hoping someone here might have a rough idea what we could get for it, or can point me to a resource to find out.

I worked for a period of time for a developer. We bought a tunnel wash, with an attached 3 bay lube shop, we were getting $4K month in rent. FYI, the Lube business is a dying business, so you might want to think about doing something else with that space.

 

[MEP001]

And are all utilities separated out for the lube shop?

I don't know, I will go look for separate meters.

 

[MEP001]

I worked for a period of time for a developer. We bought a tunnel wash, with an attached 3 bay lube shop, we were getting $4K month in rent. FYI, the Lube business is a dying business, so you might want to think about doing something else with that space.

It's a pretty dedicated use space without making major changes, but someone could do both oil changes and minor automotive repairs. The lube business is doing well around here - the dealers charge a lot more and a lot of them have a bad reputation.

 

[Rfreeman]

Mep

From what I can you are looking for lease comps on the lube shop space correct? If that is the case I know you are here in Tx and I used to work at the local appraisal districts office right out of college. There we had rent comparables and a database of rent comps for various classes of commercial property. We used these rent comps to build income approaches to value based on a discounted cash flow model and cap rate.

First find the class that is designated for lube shops. I would look for a property address that is just a lube shop and search that address on your local appraisal district website. On the website you should see a "CLASS" or "PROPERTY TYPE" field that will tell you what the appraisal district is using to classify lube shops. With this information you could ask them for income comparables for this type of class building and by law they should make that information accessible to you or for a small fee. I think here in Tarrant County you could buy the whole database for like $40.

From when I worked there I remember we didn't have a whole lot of information on lube shops because most were owner occupied spaces.

Hope this helps

 

[CostaKapo]

It's a pretty dedicated use space without making major changes, but someone could do both oil changes and minor automotive repairs. The lube business is doing well around here - the dealers charge a lot more and a lot of them have a bad reputation.

Did you ever move forward with this?

 

[CostaKapo]

I worked for a period of time for a developer. We bought a tunnel wash, with an attached 3 bay lube shop, we were getting $4K month in rent. FYI, the Lube business is a dying business, so you might want to think about doing something else with that space.

Quick lube is a growing industry as the DIFM segment is outpacing EV sales. Total customer base is growing YOY

 

[OASIS WASH]

For what is worth my self serve has a 2 bay lube facility built on the back of the property. Not ideal for advertising so Im sure that affects my numbers. Im in jacksonville florida and its 1450 sqft. I have been renting it for a auto window tinting company for 3 years for 1750 per month. Like most mentioned you need a realtor to tell you what commercial square footage is renting for in your area. Unless its right on the main road I dont think you will be renting it to a lube company. Best of luck.