Triple Net Lease Car Wash Sales Remain Robust as Inventory Grows

The triple-net lease (NNN) car wash real estate market continued to mature and expand in 2022, with more than 245 leased properties changing hands for a gross market value of more than $1 billion, according to CoStar data and B+E research. The average sale price of a NNN car wash was $4,480,273 and deals traded at an average cap rate of 5.79%.  

“We saw some very impressive trade points in 2022,” said Jim Ceresnak, a director at B+E who specializes in car wash dispositions and acquisitions. “Interest in the net lease car wash market remains high, and the robust deal activity we saw last year reflects that.” B+E advised both buyers and sellers on an estimated $100 million of NNN car wash property transactions last year.  

However, transaction statistics don’t tell the full story of a market that faced headwinds as interest rates rose and inventory surged in 2022’s second half. With buyers often unable to secure financing at rates below 6.00%, many who would have otherwise purchased a NNN car wash to capture bonus depreciation sat it out. 

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