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Hospitality Real Estate on the Gulf Coast
Bay City Realty works with hospitality and operating properties across the Gulf Coast, including restaurants, hotels and motels, fuel stations and convenience stores. These properties are different from traditional commercial real estate because the value may be tied to both the real estate and the business operating from it. That means understanding the property, the operation and the factors that will matter to a potential buyer.
Three Businesses, One Asset Class
For restaurants, the existing build-out can matter as much as the rent. Second-generation space with a hood, grease interceptor, walk-in cooler, adequate power or an approved patio can save a tenant significant time and money compared with building out a cold shell. Parking, permitted use, drive-through capability and liquor licensing can also determine whether a location works. Those are questions worth answering before a lease is signed, not after permitting begins.
Hotels are a different business from one Gulf Coast market to the next. Pensacola Beach, Gulf Breeze and the Emerald Coast are heavily influenced by tourism and seasonal demand, while Tallahassee and the I-10 corridor draw from government, university and interstate travel. For branded hotels, franchise requirements also matter. A required property improvement plan can represent a substantial investment, so understanding those obligations is an important part of evaluating an acquisition.
Fuel stations and convenience stores require another set of considerations, including fuel volume, inside sales, lease or franchise structure and environmental condition. Underground storage tanks make environmental due diligence especially important, since potential remediation costs can significantly change the economics of a deal. Net-leased convenience stores may also appeal to 1031 exchange buyers looking for longer lease terms and limited day-to-day property management.
Our Hospitality Services
Our hospitality services include:
Restaurant Sales and Leasing: Representing restaurant properties, second-generation spaces, drive-through locations and cold shells, with attention to existing build-out, permitted use, parking, access and other factors that affect whether a location works.
Hotel and Motel Sales: Representing buyers and sellers of hotels and motels with consideration for the market, seasonal demand, property performance and applicable franchise requirements.
Fuel Stations and Convenience Stores: Representing the sale and acquisition of fuel stations and convenience stores, including sale-leaseback transactions.
Net-Leased Hospitality Assets: Representing investors acquiring or selling net-leased convenience stores and quick-service restaurants, including properties considered for 1031 exchanges.
Operator Site Selection: Helping restaurant, lodging and fuel operators identify locations for new or expanding operations across the Gulf Coast.
Due Diligence Coordination: Working with the buyer’s environmental consultants, attorneys, franchisors and other professionals to help identify property-specific requirements and issues during the due diligence period.
Why Choose Bay City Realty for Hospitality?
Local Market Expertise: Gulf Coast markets can behave very differently from one another. A beach market does not operate like an inland commercial corridor, and a second-generation restaurant or fuel site brings considerations that go well beyond location and square footage. Our local market knowledge and relationships help clients evaluate properties in the context of the market they actually serve.
Industry-Leading Credentials: Bay City Realty is led by a Broker who holds both the CCIM (Certified Commercial Investment Member) and CPM (Certified Property Manager) designations. These respected industry credentials represent advanced training in commercial real estate investment, financial analysis, leasing, property management and asset performance.
The Operation, Not Just the Building: With many hospitality and operating properties, understanding the business is an important part of understanding the real estate. Seasonality, sales volume, franchise requirements and operating costs can all influence how a buyer evaluates a property. We look at those factors alongside the real estate rather than treating the building as the whole story.
Environmental Questions Asked Early: Environmental history can be particularly important when evaluating fuel sites. We encourage clients to bring qualified environmental professionals into the process early so potential concerns can be identified during due diligence. Bay City Realty coordinates with those specialists while remaining focused on our role as the real estate broker.
Ready to Move Forward?
Whether you are buying or selling a restaurant, hotel or fuel site, or looking for net-leased hospitality as investment property, Bay City Realty is here to help. Contact us today for a confidential market consultation.