Mark Frostick: Forecourt Property Insights

Mark Frostick, Associate Partner in Automotive, Roadside and Future Fuels at Rapleys, said: “2025 was another year in Forecourt property dominated by big demand for new sites but a lack of supply. This has meant operators have had to look at both ‘new to industry’ and refurbishment of old sites, including some that have not been a forecourt for many years. In fact, we are in negotiations on a couple of sites which were previously for forecourt use but closed over 20 years ago, and there is the potential for them to be reinstated. 

For ‘new to industry’ sites there remains strong competition from both the ‘food to go’ and EV operators, whilst for smaller sub one acre plots it is likely that they will stack up more for a drive thru than a petrol station as build costs for a PFS remain strong vs the relatively cheaper kit needed for a drive thru operation.

Demand for sites throughout 2025 has remained strong with regular enquires and parties approaching us for sites that were sold years ago to see if the new owners would now sell, but, as with the rest of the market, occupiers are generally holding on to their properties. We have seen a few corporate transactions happen with some groups selling out but probably the biggest news for the industry was Prax Group going into administration and the ongoing issues for the dealers who were supplied by the brand, along with the remaining retail sites run by Harvest.  

However, those issues do not appear to be related to the day-to-day running of sites, and petrol stations remain profitable. This is despite some pressure from the government and RAC on margins going forward. These margins are, in fact, leading to strong demand, and there is potential for off market deals throughout the sector. In order to get the best deal, vendors need to take the right advice and ensure they have the right target, make sure there are no lease issues on rented sites for example, and deal with title issues first which can prevent deals being delayed or even falling through.

Pricing is strong and we expect it to remain so through the year and into 2027. This will particularly be the case for the best sites, where there is a lot of competition due to the demand/supply imbalance.

Those looking for new sites need to have both a mixture of patience and pro-activeness. There are opportunities coming forward, but these are likely to be limited and regular conversations with parties and agents for existing sites will likely bring in other potential deals. Likewise, simply spotting a gap in the market, a closed down site, or another property with potential could bring positive dividends.”