In the real estate market, we are generally told that location is everything when it comes to business. When considering buying this type of business, you need to understand the factors that make a location profitable for a gas station or convenience store. Is it adjacent to a busy highway, next to a mall, or somewhere else?

When evaluating the best location for you, remember that you already have part of the answer before you even begin. Unless you move, you will need to find the best station near your current home or within a short travel distance. Don’t be tempted to think that you may be an “absent owner”, as gas stations and convenience stores are not ideal for this approach.

To ensure that you have a successful business on your hands, you must be close to the premises to keep an eye on what is happening. Profits are likely to decline if the company does not have a good manager and you need to be a practical trader to multiply your chances of success. If your station is not operating in the best condition, don’t be surprised if you don’t get the results you want.

Important considerations when searching for a location:

Everyone’s definition of the perfect location for a gas station would be next to a major interstate with quick access on / off ramp. Such a location could only be a source of income for its owners. While this is largely true, keep in mind that the major oil companies know this too and already own or lease most of the major locations. It is not impossible, but it will be very difficult to find and buy an independent station here.

While a mall or shopping center is, in theory, a prime location, there are drawbacks. Certainly a large volume of business is possible, but in general the land adjacent to the shopping center belongs to the company that owns the shopping center and is rented under strict conditions. Also, 24/7 access may not be convenient. The company will undoubtedly have a clause in the contract that will allow them to expand and replace their station with a different type of tenant, such as a chain of restaurants. Also keep in mind that if a large store arrives, it may have its own gas station and this can really hurt your bottom line. If you think this location is the right one, other motivated entrepreneurs are likely to think the same as well, and they may also try to move your station to the location.

If you’re willing to exploit the “convenience store” nature of the business, you may want to look downtown or other “diamond in the rough” locations. In suburban neighborhoods, you can establish a great business by taking advantage of the need for people to come in and buy items on their way home from work, for example. A smaller gas station and convenience store in such a location can be an excellent option, as this type of business almost never occurs in a station off a major highway or in a shopping center. A station in one of these neighborhoods will most likely be more competitively priced if you’re starting out on a tight budget.

When selecting the location, consider whether the general area is growing. If you can see new hospitals or startups opening, it’s a positive sign.

Make sure you shop in the best possible area, as your gas station or convenience store will only be profitable if you have chosen the right location.