How car washes differentiate from STNL, the nuances of business dynamics, and what the future of the space looks like
In this episode of the Matthews™ podcast, your host Matthew Wallace is joined by Clay Smith and Beryl Grant, two retail investment specialists at Matthews. Clay has been involved in over 120 retail transactions, and Beryl is our hyper-specialist in the car wash space. Today, they share their business insight on how investors can diversify their portfolio with car wash assets, a low-maintenance but high-yield property type.
1:20 — Tell us a little bit about the history of this niche asset class and how you two entered the space.
4:01 — Why have car washes dramatically increased in popularity among investors?
5:49 — What players are dominating the car wash space?
7:40 — What does it take for a car wash to differentiate itself? Have any businesses made some headway in carving out a brand for themselves?
8:52 — How are the actual real estate transactions being structured? Are we seeing real estate and the business go hand in hand, or is it just real estate?
10:28 — Let's dive into the financing. Are there any tax plays that are unique to this type of investment?
12:36 — What are some downsides of investing in a car wash? Is there any pushback in the industry?
14:13 — What about development? Is it easy for developers to deliver these types of properties?
15:34 — How does real estate factor into the decision to build/invest in a new car wash? How much does being on a corner of an intersection impact the success of a car wash?
16:58 — How do you foresee the demand as we head into a potential recessionary environment? Is that going to have an outsized impact on a carwash?
19:00 — Let's talk about the future of car washes. What does the future look like for the industry in the next six months, the next 12 months, and the next two years? How is the industry going to change and grow? Who are the major players in the space? What kind of advice can you offer to people dipping their toe into the sector for the first time?
21:45 — Do you have any parting words of advice for those looking to invest in car washes?