Auto Centers Become Go-To for Investment Alternatives

The Service First brand is looking to disrupt the traditional auto repair service (credit: Crexi).

HOUSTON—Auto repair and collision centers comprise a multibillion-dollar industry that has become an attractive niche for real estate investors seeking safe alternatives, i.e. Internet-proof investments that offer the potential for steady cash flow. This nontraditional net-lease property type is growing in popularity for this and other reasons.

One example is auto repair chain, Service First, which is gaining ground and building from its Texas roots, says Luke Miller of The Mansour Group, a Marcus & Millichap real estate services team specializing in single-tenant retail and shopping center properties. The Service First brand is looking to disrupt the traditional auto repair service, which is typically inconsistent and unreliable in terms of service and quality. Moreover, it has a lingering reputation of taking advantage of customers, he points out.