C-Store Market Report
Q3 / 2023
- The average on-market cap rate for convenience stores has gradually risen, reaching 5.34% compared to 5.00% in Q4 2022.
- Convenience stores with gas stations have an average cap rate of 5.29% while ones without gas stations are at 6.40%, a 111-basis point difference.
- This recession-resilient cap rate can be credited to investment opportunities involving gas stations.
- The Tax Cut and Jobs Act of 2017 has allowed gas stations up to 80% bonus depreciation in 2023 and will allow 60% in 2024, 40% in 2025, and 20% in 2026.