Today I learned that there's a portion of Blaine that's absolutely filthy with drive-through car washes.
The industry's proliferation in the north metro suburb has led the City Council to adopt a six-month moratorium to evaluate zoning regulations. That's according to commercial real estate reporter Jim Buchta, who brings us today's main story — a deep dive into the boom in drive-through car washes throughout the Twin Cities.
Getting a tunnel wash up and running isn't easy. They take up about an acre of land on average and cost about $1 million for the real estate alone. The facilities may cost between $5 million and $8 million to build.
Once they're up, they can be highly lucrative, especially when customers sign up for a subscription that could fetch a car wash owner nearly $100 per month.
But there may be a bust on the horizon. Private equity firms have gotten into the game and seem to be the source of the industry's boom in the area.
That's got local owners, such as Nick Netley of Sota Shine, thinking outside the box. His car wash operation also has a place for customers to bathe their dogs.
“It’s a sinking feeling when you’re a little guy and you have a juggernaut open up down the street,” he said.
You can read the full story from Buchta at the link here.
