Need your take.

[Alkazar]

Hello guys,

I have been following this forum for a little while and absorbing as much as i can about the car wash business.

I might be looking to invest(Full server express wash and lube) in the near future and have found two spots close to where i live and need your take on it. Thanks

Both Spots almost next to each other.

Spot 1. Former Towson Ford showroom facility property building with 6,000 square feet on two levels (1st Floor 4,000 +/-sf, 2nd Floor 2,000 sf). Available for conversion or total new redevelopment. Offered "as-is". Lot: 101' x 211' deep.

Located in Towson, MD. 1/4 mile from county's major Towson Town Mall (973,637 sq ft). One of the most highly trafficked corners in Baltimore County withover 62,000 cars per day. RENT $150,000/ Year . only one other Full serv wash facility within five miles.

Spot 2. Former use: Auto sales and Towson Washmobile facility A. .789 acres, 34,400 square feet. 215' of frontage x 160' deep. B. Additional property: 1 parcel to the north available for overflow and employee parking. Can accomodate up to 25 cars. Size: 35' x 174'.

Located in Towson, MD. 1/4 mile from county's major Towson Town Mall (973,637 sq ft). One of the most highly trafficked corners in Baltimore County withover 62,000 cars per day. only one other Full serv wash only facility within five miles. RENT most probably more than $150,000 as it is a larger pad than spot 1, but i will figure this out soon.

Now my question.

since rent is high for these properties but so is the potential. what kind of investment(equipment) should i be looking for to make this profitable at the least and what would you do with this property. Lets say $1,000,000.00

Thanks

Umar

 

[robert roman]

In my opinion, you are putting the cart before the horse.

Many car wash developers try to stay ahead of this game by first focusing on the appropriateness of an area for a particular use rather than investment attractiveness of a particular property.

This means searching and choosing markets most appropriate for carwash.

This process involves estimation of total market potential, identification of supportable number of car wash outlets and selection of potential site locations for carwash.

You can only make sense of a comparision between Site A and Site B after you determine there is actually a need for another car wash in an area.

 

[Alkazar]

Hey Thanks Robert for your input.

Yes i did and still am doing that search of "appropriateness of an area for a particular use"

There is only ONE full serve car wash in five mile radius as far as i know(they dont have express lube). We are talking a good 100K+ people here average income of $56K Couple of detail shops and some self serve lots.

Now what makes people go for the express wash and lube type instead of self serv or $25-$40 hand washes that take 30 min each car. Thats where I wanted some of you to school me with some wisdom.

"This means searching and choosing markets most appropriate for carwash."
a. Demographics
b. Competition
c. Location
d. ....(fill me in on these points too)
e ....

"This process involves estimation of total market potential,"
need more help on this one. so far i know there are about 100k+ people $56K ave income

"identification of supportable number of car wash outlets"
i am not sure what you mean by this, elaborate please

"selection of potential site locations for carwash."
62K traffic count, rent $150,000.00/year or little more. zoning is correct for wash lube business, mall and many shops nearby,
can you please identify other things that you will look for in site identification.

Thanks
Umar

 

[my2cents]

There is a lot to consider and this forum could go on and on. You should have at least two opinions from local wash professionals regarding viability of the sites. This along with your gut instinct, proper financing and desire should get you to a point where you move forward or not. Find someone who knows the market in Baltimore and how you can compete. The information you have supplied is a good start but not enough for proper evaluation.