National + Net Lease | February 13, 2023

Triple-Net Car Wash Sales Remain Robust as Inventory Grows

The triple-net lease (NNN) car wash real estate market continued to mature and expand in 2022, with more than 245 leased properties changing hands for a gross market value of more than $1 billion, according to CoStar data and B+E research. The average sale price of a NNN car wash was $4,480,273 and deals traded at an average cap rate of 5.79%.

“We saw some very impressive trade points in 2022,” said Jim Ceresnak, a director at B+E who specializes in car wash dispositions and acquisitions. “Interest in the net lease car wash market remains high, and the robust deal activity we saw last year reflects that.” B+E advised both buyers and sellers on an estimated $100 million of NNN car wash property transactions last year.

However, transaction statistics don’t tell the full story of a market that faced headwinds as interest rates rose and inventory surged in 2022’s second half. With buyers often unable to secure financing at rates below 6.00%, many who would have otherwise purchased a NNN car wash to capture bonus depreciation sat it out.

The buyers who did participate could afford to be choosier, since the number of available NNN car washes exceeded 160 properties by November 2022 – more than double the number available at the end of September.

Even as dozens of NNN car wash transactions were completed in the last four weeks of 2022, the influx of new supply shows no signs of slowing down. More than 35 new NNN car wash properties have been listed since Jan. 1, B+E reported.

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Inside The Story

B+E's Ceresnak

About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).