U.S. gasoline demand peaked in 2018 and has not returned. Yet by the industry's own accounting, 2025 was one of the most profitable years fuel retail has ever had. An in-depth July 2026 industry outlook from MMCG Invest explains the paradox: the gas station stopped being mainly a fuel business.
The store now carries the site
Citing industry data, the report notes that the industry sold $817.5 billion of goods and fuel in 2025, with record in-store sales of $341.2 billion. Fuel was 65% of sales dollars but only 38.8% of gross profit dollars. Retail fuel margins averaged above 40 cents a gallon in 2025, roughly double the pre-2020 level.
Investors have noticed. According to the report, convenience and gas is now the tightest-priced category in net lease: Wawa deals priced at 4.90% to 5.20% cap rates in Q1 2026, against a 6.80% all-sector average.
The tank clock
The less-discussed variable sits underground. According to federal tank data cited in the report, there are 533,277 active federally regulated underground storage tanks, and roughly 275,000 of them are already 30 or more years old, largely the generation installed to meet the 1998 federal upgrade deadline. The average completed cleanup of a tank release costs $142,219, according to figures cited in the same report, and a full three-tank replacement at an operating site can run roughly $500,000 to $1.5 million.
What it means for South Florida owners
- Value is in the corner, the tanks and the record. Buyers and lenders look closely at tank age, construction and compliance history.
- Know your tanks before you sell. Tank age, wall type and any past discharges shape price, financing and timing.
- A legacy discharge is not the end of a sale. With the right plan, contamination can be quantified, addressed and closed out as part of the transaction.
Sources
This article is general market commentary for property owners and investors. It is not investment, legal or tax advice. Figures are as reported by the sources above on the dates shown.
