What Makes a Great Automotive Site? Six Checks Before You Sign
A car dealership, collision centre or tire shop is one of the most demanding users a piece of commercial real estate can have. The building matters, but so do the sightlines, the driveways, the zoning and everything that happened on the land before you arrived. Choose well, and the site quietly works for your business every single day. Choose poorly, and no amount of marketing will fully make up for it.
Whether you are a dealer principal, a franchise operator or an investor who wants to own the real estate beneath an automotive tenant, here are six things worth working through before you sign.
1. Start With the Use, Not the Address
A great location means very little if you are not allowed to operate there. Municipalities often treat vehicle sales, service and body work as their own specific uses, so a property zoned for general retail may not automatically allow them. Confirm every part of your plan, including outdoor display, repair bays and storage, with the municipality and a planning professional early. It is a far better conversation to have before a deposit than after one.
2. Read the Traffic, Not Just the Count
A big traffic number looks impressive in a brochure. What matters more is how easily drivers can see you and reach you. Which side of the road are you on for the commute home? Is there a median? Can someone turn left into the site safely? Could a car carrier or a tow truck get in, turn around and get out? Spend an hour at the property at different times of day. The site will tell you a great deal.
3. Mind the Ground Beneath You
Automotive properties often have a history, and former service stations or repair shops can carry environmental concerns. Before you commit, ask an environmental consultant whether an assessment is appropriate, and have your lawyer review who is responsible for what. This applies to tenants and buyers alike. A property's past has a way of becoming the next owner's question.
4. Plan for the Vehicles You Cannot See
Every automotive business needs more room than it first appears. Think about inventory, customer parking, staff parking, deliveries and vehicles waiting for service. Inside, look closely at ceiling heights, bay door sizes, floor drains, ventilation and electrical capacity. If electric vehicle service or charging is part of your plan, speak with the local utility about available capacity sooner rather than later.
5. Know Your Brand's Requirements
Many manufacturers and franchisors have their own standards for facility design, signage and site approval. Ask for those requirements at the very beginning, because they can narrow your search quickly and may affect your timeline. It is much easier to shop with the rulebook in hand than to discover a conflict after the negotiation is done.
6. Write the Lease for the Long Game
Automotive operators invest heavily in their premises, so the agreement should reflect that. Pay close attention to the length of term, renewal options, assignment rights if you ever sell the business, signage, permitted use and what must be restored when the lease ends. Whether leasing or buying is the better fit depends on your own situation, so speak with your lawyer and accountant before deciding.
The Smartest and Most Logical Decision
The best automotive site is rarely the one with the biggest sign or the lowest rent. The smartest and most logical decision is the one where the permitted use, the access, the land, the building and the lease all point in the same direction. Do that work up front, and you will not simply be renting a location. You will be securing a platform for years of business.
Looking for a dealership, service or automotive retail site, or hoping to invest in one? I would be delighted to help you think it through. Contact Natasha at nserealtor.com.