In a recent article for Autobody News titled “Collision Center Operators Expand By New, Build-To-Suit Locations”, Associate Samuel Griffeth advises private landowners building for and working with shop owners and MSOs.
Auto body shops and MSOs around the country are building new locations from the ground up to expand their reach. As one of seven Matthews™ agents specializing in collision centers, Griffeth provided insights into the growing demand for net lease collision center properties.
In 2024, the market saw 15 such first- and second-generation properties sold, and 20 in 2023. A second-generation sale refers to a new build that has been sold twice. The total amount traded on the market in 2024 is $143 million.
Griffeth notices more new-build interest from Caliber, Crash Champions, and even Classic Collision, which is occasionally “kicking his clients’ tires” for body shop locations.
Matthews’ market research highlights high-growth areas in Texas, Washington, Central Florida, Coastal Virginia, and North Carolina. The report says lease rates for new builds can be up to 50% higher than older properties. Griffeth adds that larger MSOs will pay more rent. Caliber’s taste can run to $350,000 to $400,000 a year.
“They want what they want,” and will pay 7% of annual sales for a lease, he claimed.
Griffeth mentions a Pittsburgh-area Caliber as a new-build for sale, including images of another in Largo, FL.
“The market is coming back,” Griffeth states.
Read the full article here to gain more insights on how autobody shops and MSOs are expanding their reach with new developments.
