A $10 million deal on Miami’s Biscayne Boulevard is emblematic of the accelerating demand for net lease car wash facilities, propelled by the reintroduction of 100% bonus depreciation. The transaction, brokered by Colliers' Senior Vice President Christopher Twist, involved a Class A express car wash—an asset notable not only for its rare location and strong rent coverage, but for the bidding frenzy it helped spark among sophisticated investors focused on maximizing first-year tax savings while capturing long-term yield.
Twist, who represented both sides of the transaction, identified 100% bonus depreciation, which was recently restored in the One Big Beautiful Bill Act, as the defining market force drawing increased attention to specialized net lease properties like car washes nationwide.
“The reinstatement of 100% bonus depreciation has created record demand for specialized net lease assets like car washes,” he said.
“Investors are leveraging these opportunities to capture substantial first-year tax savings while securing long-term income streams.” As a result, car wash sales—once viewed as a specialist’s play—are attracting a broader pool of high-net-worth individuals, institutions, and private buyers seeking accelerated tax advantages.
Unlike other asset types, net-leased car washes offer a unique blend of stable operating income and eligibility for 100% bonus depreciation, with many transactions being structured as sale-leasebacks. Twist pointed out that the expanded use of leverage further amplifies the returns for qualified investors.
“We’re still seeing transactions being done on debt, around 68% leverage, which when you combine with 100% bonus depreciation, the returns are just staggering from a one-year perspective,” he observed. Within just six months, pricing in the car wash sector has climbed as much as 25%—a remarkable pace in any net lease niche.
Car wash assets, like the 3,365-square-foot facility on Biscayne Boulevard, are seeing record pricing for three core reasons: Rare market availability, exceptional demographic strength and a tax structure that allows buyers to materially lower their effective acquisition cost. In practical terms, Twist says, “For a $5 million car wash with a $1 million land allocation, we’re seeing $4 million in depreciation in the first year.” For investors in the top tax brackets, this can mean more than $1.5 million in federal tax savings—funds that can be redeployed elsewhere immediately.
The trend is driving cap rate compression. Buyers are increasingly willing to accept lower fixed yields in exchange for outsized, up-front tax benefits, betting that continued investor demand—and a constrained supply of quality, high-performing assets—will support further price appreciation or attractive resale opportunities within a short hold period.
As Twist explains, “Right now…high net worth individuals and institutions are chasing these assets at lower cap rates in order to hold and most likely to resell in the next year or two as the market continues to compress”.
Nevertheless, Twist cautions that not every car wash property offers the same upside, urging rigorous underwriting and a focus on proven locations and rent coverage.
“It’s very important as an investor to have a trusted car wash advisor…because the market is getting flooded by car washes. Not every single car wash is a Chase Bank with a 20-year lease.”
He points to pitfalls such as insufficient tenant financials, untested sites, or underperforming sales as real risks, particularly as new developments spread and operators race to capture premium values under the current tax regime.
Twist sees little sign of demand slowing, with 100% bonus depreciation authorized through at least 2028. He recommends investors move early in the calendar year to avoid pricing spikes and supply shortfalls, which typically happen in the fourth quarter when year-end tax strategy becomes the dominant driver of transaction activity.
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