Sunday, April 12, 2009

Supply of Auto Dealerships

According to the National Automobile Dealers Association (NADA), approximately 900 dealerships closed and 200 dealerships opened in 2008, for a net loss of 700 dealerships, leaving the country with approximately 20,000 franchised auto dealers. ... For 2009, the NADA forecasts a net loss of 900 additional dealerships.

According to CoStar Property Professional, 5.4% of auto dealership properties across the country are vacant and another 3.7% are available for lease, bringing total availability to 9.1%, or 1,023 "spaces" for lease; this compares to 3.5% vacancy about one year ago. Additionally, CoStar COMPS data shows that there are currently 1,861 auto dealership properties actively listed for sale across the country.

Unfortunately, CoStar's statistics show that auto dealership properties coming onto the market aren't going anywhere fast. The current "for sale" inventory not only dwarfs the number of auto lots that have sold so far this year (only 95), but is about equal to the total number of auto dealership properties that sold during 2008, 2007, and 2006 combined. Additionally, auto dealership properties currently for lease have already been on the market for an average of 9.6 months.

1 comment:

The Dean said...

Nice analysis CP i've been waiting anxiously for another blog post of yours.... so anxiously that you should consider making readers pay for your valuable content and then post more frequently.

This entry got me thinking about the opportunities in the secondary market for used cars and machines- RBA & CPRT for instance.