Auto Industry Creating Real Estate Opportunities
If you are in the market for a large piece of real estate, or are looking to lease new space, you might want to take a look at your local car lot.
The floundering auto industry, lingering credit crisis, and sporadic gas prices have forced auto dealers in almost every state to close their doors and put their properties up for sale. Across the U.S., 750 car dealerships have closed their doors and 150 more are expected to close by the end of the year.
For example, in Coral Gables, Fla., there are currently about a dozen car lots for sale, says Michael Fay, president of Colliers Abood Wood-Fay. Colliers is also marketing three former dealerships in Miami. And back in September, Bill Heard Enterprises, one of the nation’s largest car dealers, closed 13 dealerships, citing rising fuel prices, credit problems and an overabundance of unpopular trucks and SUVs.
Experts expect the number of dealership closings to increase in 2009 and estimate that as many as 3800 car dealers may be at risk.
Source: South Florida Business Journal