Since 2009, survey responses for rent have varied from between 10 and 15 percent of gross sales revenue.
A long time ago, I operated a business-only full-serve and the rent was $7,000 per month, CPI increase, capped at 2 percent. Gross sales were around $500,000.
On other hand, rent for high volume full-serve like Mister Carwash site might be $300,000 or $25,000 per month. Of course, the place washes over 100,000 cars annually.
Gross $2.0 million, rent would be 15 percent. $1.7 million, rent is 18 percent.
In highly dense urban areas in N.Y., N.J., CA, etc. where land is very expensive, the carwash real estate is seldom sold.
Here, the rent will reflect highest and best use rather than actual use as carwash.
Low volume full-service might gross $400,000. So, typical rent of $7,000 per month is about 21 percent gross.
In all cases mentioned, rent does not include property tax or insurance.
