Petrol Stations

If you ever want to redevelop there would be some fair remediation costs though!
That all depends on what the lease says. Petrol Station leases have gotten a lot better in recent years which helps reduce the risks associated with contamination. One of the reasons yields have fallen so much.
 
That's about it. Lock a franchisee inwho has to buy your products through your supply chain and pay for everything over and above the building shell.
quoted for truth.

hurts even more when everyone around you are using the 'cheaper' supplier and you're stuck with Caltex or the like.
 
I have been told that once a petrol station decides to close down or leave, the land is pretty useless in anything else other then a petrol station, so maybe thats factored in?
 
Petrol stations are an interesting business. As an aside, I am told some of the major petrol giants were chasing experienced operators to start up shop in Malaysia and China - both countries with plenty of aspirational car owners. The number of car users in Aust is unlikely to double in a decade - the situation in NICs is much more rosy for those who can stomach the many dramas of doing business overseas.

Something to think about: in 20 years from now, most new cars will probably not be running on petrol.
 
I have been told that once a petrol station decides to close down or leave, the land is pretty useless in anything else other then a petrol station, so maybe thats factored in?
If that was the case I'd want a lot more than 5 or 6%. In the old days that might have been true and that is why the yields were more like 8 or 9%. Plus the current cost of money.

That is where the lease comes in. A good lease will have a requirement for a Environmental Audit at lease commencement and then an assessment 6 months prior to expiry after which the tenant has to remediate to the standard shown in the original Environmental Audit.
 
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