The fuel forecourt market has seen major changes in recent years. Roadside development has increased with more innovative and customer focused sites being built and there is now high demand for land adjoining main roads – from which landowners could capitalise.
The oil companies have generally been retreating from direct retailing, deciding instead to supply to independent (indie) operators trading under the traditional fuel banners. Some of the largest indie groups are backed by significant international private equity money and are driving up values. They are looking for new-to-industry sites in prominent locations of 0.25 acres upwards. Demand is for both freehold and leasehold options and values often outstrip existing use value significantly.
There is a strong demand for sites across the whole country, along both existing and newly planned main arterial roads.
To drive profit and value from the sites, innovation has been key. Partnering between fuel operators and well known retailers is now evident across the UK with the likes of Subway, Costa, Greggs, and Starbucks regularly appearing within the wider forecourt developments. Likewise, the indies are also tying up with supermarkets including Morrisons and the various Co-Op groups.
Demand for sites
With new road building and town expansions taking place nationally, there has never been a better time for land owners to take advantage of the insatiable demand from fuel operators. Where gaps in the national forecourt network exist, land values for roadside development have never been higher.
Having been involved in the development of forecourt sites through planning, agency, project management and investment disposal, we have been able to take part in the market changes as they have progressed and recognise the exciting opportunities which lie ahead. With a sound knowledge of this market, we are best placed to help evaluate site suitability and its potential.
If you know of any suitable sites or would like more information, please contact Philip Blackford.