I work for a small REPE firm in Texas. We recently got into the car wash business (about 3 years ago) and are developing several express car washes in major texas markets. Anyone else on this forum in car wash development? I am interested to hear how labor and construction material increases have affected your ability to develop. We've seen a dramatic rise since 2013 and it is starting to give me concern that we may need to adjust our pricing to justify development (although we hope this won't affect our car counts).
Anything else related to the car wash business is welcome. I just wanted to get something started on WSO because I think it's a great community.
Thanks,
TXrealestate be interested to hear thoughts on this too. Across the board prices in construction have gone up for sure. Just thinking though..I assume most of the cost in this type of construction would be whoever you are buying the actual car wash system from, right? I am imagining one of those nice modern touchless ones. Can't be cheap. In your good performing locations, what kind of revenue do these things do, or how many cars a week? Out in the valley here in NorCal I have seen one called Prime Shine Car Wash. Used it once too. Super nice and everything. What companies make these systems? The rest of your cost I am assuming is paving/some covered parking areas and the main building that the car wash is in.
@pere797" Yes equipment is expensive (about $1M) and we get ours from Sonny's Car Wash Equipment, which is the biggest supplier in the market if Im not mistaken. Total Capitalization usually breaks down like this: $1M for the land, $1M for equipment, $1M for building (although this is increasing rapidly so more like $1.5M now), and about 500K for soft costs. So all in about $4M. Revenue for these things are generally $1M/year with a $500K EBITDA (exactly the same as NOI for us real estate guys). Can be lucrative, but as always, depends on your structure with equity and how quick you can stabilize.
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