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Mid-America Blog

Gas Stations Growing in Michigan

Gas stations are becoming a rapidly expanding category throughout Michigan. Many vacant and under-utilized corners are seeing development by both local and national operators.  As a result, land prices are increasing for high traffic intersections throughout the state. Companies like Speedway are assembling land around their existing gas stations to scrape and re-build with larger footprint convenience stores including more gas pumps, food offerings and charging stations for electric vehicles. Kroger is rapidly adding fuel stations to the outlots of their existing grocery stores. When space isn't available for the fuel stations, Kroger has been leasing or acquiring land in close proximity to their grocery stores to build on. We are seeing this with Kroger throughout the state, in both major metros and smaller county seat towns.

Michigan based operators such as USA To Go and Johnny’s have been upgrading their gas stations by expanding their footprint in both gross leasable area and number of locations to keep up with the growing competition. In addition, local operators have franchised with concepts like Tim Hortons, Dunkin Donuts, and Subway to co-brand with their c-stores. Also helping with the expansion process are changes to the law, making it easier for gas stations to acquire a license to sell beer, wine & liquor. 

Two companies that have made a recent entrance into Michigan are Circle K, with stores in Ann Arbor and Ypsilanti, and Casey’s General Store, who announced their first Michigan location coming to Watervliet. We don’t see this gas station expansion slowing down anytime soon, only continuing to evolve. Now, as a broker, Instead of looking at corners for pharmacies and fast food restaurants, we envision large format gas stations where we can grab lunch and groceries.

Gas station

Jared Gell | CCIM
Mid-America Real Estate Group
38500 Woodward Avenue, Suite 100 | Bloomfield Hills, MI  48304
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