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Adding a Fuel Facility to Boost Sales

By Steven J. Roberts

Many retailers are adding fuel facilities adjacent to or near their retail stores as a mechanism to drive sales of their primary business. The retailer rewards its customers with discounts on fuel if the customer spends a certain amount of money on merchandise at the primary retail business. The location may be “on site” as part of the retailer's primary operating store site. It may be within the shopping center where the primary store is located. It may be across the street or down the road at a location convenient for the primary store's customers. Wherever the location, the retailer wants to open the fueling facility as soon as possible so it can drive sales at its primary retail business.

Adding a fuel facility to a retailer's portfolio of properties may at first appear to be a simple task; however, whether adding the facility to the current lease by an amendment of the lease or entering into a new lease for space within the shopping center or down the road, the landlord and the tenant will need to address several issues that can slow down or completely prohibit what is thought to be an easy, simple transaction for a site for a fuel facility.

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