Key Elements to Investing in Convenience Store Gas Stations

By Ray Martin, Managing Director, The Martin Agency

Easton, Connecticut | Offices in CT, RI, NY, SC, FL | National & Middle East Representation

(4-minute read)

Convenience store gas stations (C-stores) remain one of the most resilient asset classes in commercial real estate. The Martin Agency has closed more than 80 C-store transactions in the last 24 months, and four recurring factors separate winners from the merely active.

1. Traffic Count + Ingress/Egress = Cash Flow

A 25,000 ADT (average daily traffic) corner is table stakes; a right-in/right-out design that avoids left-turn conflicts is the multiplier. Look for signalized hard corners or sites with dedicated deceleration lanes. One extra second of driver friction can shave 8–12% off gallons-per-month.

2. Fuel Margin + Inside Sales Mix

Target 12–18¢/gal unbranded rack-to-retail margin and 35%+ gross profit on inside merchandise. National chains now average $1.9M inside sales on 3,200 sq ft; independents beat them by focusing on foodservice (30–40% of inside GP).

3. Brand vs. Unbranded – Know the Play

Branded (7-Eleven, Circle K, etc.): 10–15 year triple-net leases, 5–7% cap rates, corporate credit.

Unbranded: 12–18¢ fuel margin, operator upside, 7–9% caps.

Pick the risk profile that matches your hold period.

4. Bonus Depreciation – The 2025 Turbo

Under current IRS rules, 100% bonus depreciation still applies to qualified improvement property (QIP) placed in service before December 31, 2026. New tanks, canopies, dispensers, POS systems, and LED retrofits all qualify. A $2.5M acquisition with $800k in equipment can shelter $800k of ordinary income in Year 1—a 32% after-tax IRR boost for high-bracket investors.

Pro move: Close escrow in Q4, place equipment in service by 12/31, and file Form 3115 for cost-segregation studies.

Bottom line: Buy the corner, lock the fuel margin, layer foodservice, and harvest bonus depreciation while it lasts.

Contact The Martin Agency for a confidential site-selection memo tailored to your tax profile.

www.theraymartinandagency.com

203.650.1181