Service Station Investment
In recent years, the retail sector has faced some challenges due to the rise of ecommerce, shifting consumer behaviour and the impact of economic factors such as high interest rates and inflation. However, the retail property market has shown resilience, especially in high-demand locations such as inner-city areas and major shopping precincts. As such, buying retail property continues to be an attractive option for those looking to diversify their portfolio. Want to invest with confidence in a transforming sector? Make your purchases with the guidance of an experienced service station property buyer’s agent from Costi Cohen.
What is the future for
service station investments?
The service station sector is undergoing a period of transformation. One significant trend is the expansion of services beyond fuel. Many service stations now generate revenue from attached convenience stores, fast-food outlets and even EV charging stations. These additional income streams diversify their profitability and can make them more resilient to shifts in consumer behaviour.
At the same time, demand for traditional fuel remains strong, especially in regional areas where alternatives like EVs are less prevalent. This means that quality service station investments in these locations are likely to continue generating stable returns.
Looking ahead, the rise of EVs will undoubtedly play a key role in shaping the future of this sector. As EV adoption grows, many service stations are expected to transition into multi-energy hubs, integrating charging facilities alongside their traditional offerings.
Meanwhile, investors should also be mindful of stricter environmental regulations, which will likely drive higher compliance and maintenance costs but also create opportunities for upgrading sites to meet sustainability standards.
While these changes pose challenges, they also open doors for innovative investors who can adapt to the evolving landscape — this is where our buyer’s agents for service station properties come in. Locations near urban growth corridors and highways are likely to see increased demand as populations expand, offering long-term value for strategic buyers. Take advantage of Costi Cohen’s expertise and secure future-ready investments in these high-growth locations before demand outpaces supply and competition intensifies.
Why buy
service stations?
Service stations appeal to many investors due to their predictable income streams and long-term leases. Additionally, the mix of income from fuel sales and retail operations reduces reliance on any single revenue source.
However, as with any investment, there are risks to consider. Declining fuel demand over time could impact profitability, particularly for stations that don’t adapt to the EV transition. Environmental compliance is another challenge, as older sites may require costly remediation work.
To maximise returns, investors should look for sites with diversified income streams and high foot traffic. Working with an experienced service station property buyer’s agent can also help identify properties with strong growth potential while mitigating risks.
Key considerations when
buying service stations
Environmental site assessments are a non-negotiable step in the buying process. Older service stations, in particular, may have site contamination issues or outdated infrastructure that could require costly remediation. Similarly, it’s essential to understand who owns the pumps and tanks as leased equipment can increase ongoing costs. Additionally, investors should also evaluate fuel supplier agreements, as these can affect profitability.
Lease terms should also be scrutinised closely. Long-term leases with reputable tenants provide stability, but investors must also ensure that terms include provisions for rental increases and clarity around maintenance responsibilities.
Why buy with
Costi Cohen?
Investing in service stations can be highly rewarding, but the process is far from straightforward. Attempting to navigate this market without professional support risks overlooking key details, overpaying or investing in properties with hidden liabilities.
At Costi Cohen, our expert service station property buyer’s agents specialise in helping investors make confident, well-informed decisions. Our team conducts thorough due diligence, from evaluating environmental risks to analysing lease agreements, ensuring you invest wisely. With in-depth market knowledge and strong negotiation skills, we help secure competitive terms for your investment.
How to finance the purchase of a
service station
Financing a service station typically involves a combination of lender support and personal equity. For newer properties with modern infrastructure, lenders may offer to finance up to 60% of the purchase price. Older properties, particularly those with environmental concerns, may secure less favourable terms, requiring investors to contribute more upfront.
Working with a specialist broker can help you secure competitive financing options tailored to your situation. They can also guide you through the lender’s requirements, such as environmental site assessments and financial documentation, ensuring a smooth application process.
As Australia’s first commercial full-service buyer’s agents, Costi Cohen makes the buying process straightforward and rewarding. Backed by our 60+ years of experience in commercial real estate and development, we help our clients navigate complexities, identify standout opportunities and secure above-market yields. Contact us for a trusted service station property buyer’s agent and begin your search today.
Explore some of our
Service Station Purchases
FAQs
What does a service station property buyer’s agent do?
A service station property buyer’s agent specialises in sourcing, evaluating and securing service station investments on behalf of the buyer. At Costi Cohen, our team works exclusively for buyers and not sellers to ensure every purchase aligns with your financial goals and risk profile.
We also work closely with our development site buyer’s agents when identifying sites that offer value-add potential, future redevelopment opportunities or integration with evolving infrastructure needs such as EV charging stations. Our team conducts due diligence, assesses lease terms, evaluates environmental risks and negotiates the best possible terms for you.
Why invest in service station properties?
Service stations offer multiple income streams through fuel sales, retail operations and, increasingly, EV charging stations. Their typically long lease terms and visibility on high-traffic roads make them attractive for investors seeking relatively stable returns. With strategic location selection and expert guidance, service stations can be both resilient and highly profitable additions to your portfolio. For deeper insights, explore our latest trends in the Insights hub.
Do you help with off-market service station deals?
More FAQs
How do you assess the value of a service station?
We evaluate a range of factors, including location, foot traffic, fuel volume, retail revenue, infrastructure condition, lease terms and tenant strength. Our valuation approach also includes analysing future demand, environmental obligations and capital expenditure requirements. This comprehensive process ensures you're paying the right price for long-term performance. For specialised support, we also work with experienced property development consultants and other valuation experts.
What are the key risks in buying a service station property?
The main risks include:
- Environmental contamination from underground fuel tanks
- Declining fuel demand if the site doesn’t adapt to EV trends
- Unfavourable lease terms or weak tenants
- Hidden capital expenditure for remediation or upgrades
At Costi Cohen, we identify these risks early, helping you avoid costly surprises. We also connect you with trusted partners for site assessments and legal reviews.
Are environmental assessments necessary for service station purchases?
Yes, they’re essential. A detailed Environmental Site Assessment (ESA) identifies potential contamination or infrastructure concerns, which could lead to costly remediation or limit your resale options. Our team ensures these assessments are completed during due diligence and interprets the findings to help you make an informed decision.
How does lease structure affect a service station investment?
Lease structure has a major impact on income stability and long-term value. Key considerations include:
- Lease length and renewal options
- Annual rental increases (fixed or CPI-linked)
- Responsibility for outgoings and maintenance
- Fuel sales volume-linked rent clauses
Our service station property buyer’s agents will connect with experienced professionals to review lease agreements, ensuring they align with your investment goals and negotiating favourable terms where possible.
Can you help assess fuel supplier agreements?
Absolutely. Fuel supply contracts can significantly impact margins and ongoing profitability. We can coordinate with legal and industry specialists through our trusted partner network to help you review the terms, including fuel rebates, price protection clauses and volume targets.
Do you negotiate terms with existing tenants?
What ROI can be expected from service station investments?
Returns vary based on factors like location, lease strength and operational performance, but service stations often deliver net yields between 4% and 7%, with upside potential through strategic upgrades or site repositioning. At Costi Cohen, we help identify investments with strong fundamentals and room for growth. View examples of past performance in our portfolio.
We would love
to hear from you
Costi Cohen — Australia’s premier commercial real estate consultants
Whether you’re a seasoned investor or new to the market, our expertise will pave the way for your success in commercial real estate. We’ve looked after more than 250 commercial properties and are prepared to help you discover your next investment opportunity.
No matter your timeline, budget or preferred location, the expert team at Costi Cohen can help you find a commercial property that aligns with your needs. We invite you to get in touch with our team for a consultation today.
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