Market Overview
The UK roadside and petrol filling station sector remains a resilient component of the commercial
property market. Demand is supported by diversified income streams derived from fuel sales,
convenience retailing, food-to-go offerings, and ancillary services. The sector continues to benefit
from constrained supply and strong investor appetite for operational assets.
Transaction Activity and Investor Demand
Transaction activity has remained steady despite wider economic uncertainty. Investor demand is
driven by institutional, private, and owner-operator purchasers seeking defensive income and
long-term operational potential. Well-located assets with modern forecourt layouts and strong
trading histories remain particularly sought after.
Pricing, Yields and Values
Prime roadside and petrol filling station assets continue to attract keen pricing. Long-let investment
assets with strong covenants typically trade at yields in the region of 5.25% to 6.25%, subject to
lease terms and covenant strength. Owner-occupied or short-income assets are generally valued
by reference to trading performance using profits-based methodologies.
Occupational Market and Trading Conditions
Occupational demand remains robust, supported by ongoing reliance on private vehicle use and
growth in convenience retailing. Non-fuel income streams continue to play an increasingly important
role in overall profitability, with modern sites placing greater emphasis on retail and food-to-go
offerings.
Electric Vehicles and Future-Proofing
The transition towards electric vehicles represents a key structural consideration. While internal
combustion engine vehicles continue to dominate the national fleet in the medium term, sites
capable of accommodating EV charging infrastructure and associated dwell-time retail uses are
considered better positioned for long-term relevance.
Planning, Environmental and Regulatory Considerations
Environmental and regulatory matters remain central to valuation considerations. Key issues
include underground storage tank condition, contamination risk, planning constraints, and
compliance with health, safety, and environmental legislation. Assets with recent upgrades and
clear compliance records typically attract stronger demand.
Outlook
The outlook for the roadside and petrol filling station sector is cautiously positive. While longer-term
structural changes associated with decarbonisation present challenges, the adaptability of the
sector and continued demand for convenience-led roadside services are expected to support
values in the short to medium term.
Speak with one of our commercial valuation surveyors for your RICS Red Book valuation requirements. Our surveyors all Registered Valuers.
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