Worth building a wash?

[Cluelessman22]

Hi everyone,

We have a corner intersection property in a town of 13k with a surrounding city of 43k. Traffic count is 22k on one road and 7.5k on the other. Across from a neighborhood Walmart as well.

Question is: Is it worth building a tunnel car wash? If so, what is the approximate cost and size recommended?
We have had 2 inquiries from car washes to lease the land as well in the past year.

Thanks.

 

[I.B. Washincars]

Decide if you think the area can support two washes. If it is built and appears to do well, another will be built nearby. Building them one on top of another is common. Ethics seem to be a rarity when it comes to this segment.

 

[Cluelessman22]

Decide if you think the area can support two washes. If it is built and appears to do well, another will be built nearby. Building them one on top of another is common. Ethics seem to be a rarity when it comes to this segment.

I've noticed that as well. The city adjacent is building its 3rd wash on the same road.
What is the typical cost?

 

[MEP001]

$3 million is not uncommon.

 

[Rfreeman]

Hi everyone,

We have a corner intersection property in a town of 13k with a surrounding city of 43k. Traffic count is 22k on one road and 7.5k on the other. Across from a neighborhood Walmart as well.

Question is: Is it worth building a tunnel car wash? If so, what is the approximate cost and size recommended?
We have had 2 inquiries from car washes to lease the land as well in the past year.

Thanks.

If it is a class A company I would do a land lease for 25 years and 5 year escalation clauses tied to CPI or Prime Interest rate. Triple net of course and be done with it. If not them I would list if for lease under the conditions above and just collect mailbox money.

 

[Cluelessman22]

If it is a class A company I would do a land lease for 25 years and 5 year escalation clauses tied to CPI or Prime Interest rate. Triple net of course and be done with it. If not them I would list if for lease under the conditions above and just collect mailbox money.

Had a carwash company that wanted to do a land lease for 25 years, but backed out!