Service Station Property Market Report
The fuel industry continues to endure a period of rationalisation which has been occurring since the mid to late 1990’s. Prior to this period, oil companies were paying inflated rents in order to secure sites. At this time, fuel gross profit margins were higher and in some cases, in the order of 10¢ - 12¢ per litre.
Since then, fuel margins have decreased to within a range of 2½¢ - 5¢ per litre. Also, major oil companies have renegotiated leases at review opportunities or vacated the sites if rents are excessive and negotiations fail.
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