Vancouver's second-last downtown gas station sold to a development company for a bargain price of $72 million, and now its last fuel centre is on the market.
CTV News reports the Esso station located at the intersection of Burrard and Davie Street is listed without an asking price, but adds that it will likely sell for a similar price as its former competitor.
The city's skyline continues to expand, and may do so at the expense of commuters or visitors in and around the downtown core due to an increased inaccessibility of fuel. However, this surplus of earnings may prove valuable to land owners.
“[Unlike real estate,] pumping gasoline is not a very high margin business,” said Tsur Somerville, director of the University of British Columbia Centre for Urban Economics, to CTV News.
“You’ve got to sell a lot of slushies, a lot of lotto tickets in order to make those kinds of millions. So, you know, it is not surprising.”
Drivers fill cars with fuel at an Esso gas station in Vancouver, B.C., in May 2016. (Photo: Ben Nelms/Bloomberg via Getty Images)
If the Esso sale goes through, Vancouver would become the first big city in the country to have no gas stations downtown.
A similar trend has hit the condo-dense San Francisco. Local outlet ABC 7 reports there are 40 per cent less gas pumps in the city than there were 10 years prior, with many shutting down to make room for parking lots or housing.
Jeff Lenard, the vice president of strategic industry services at The Association for Convenience and Fuel Retailing in the U.S., agrees with Somerville, and adds gas stations turn a limited profit.
"The average markup on a gallon of gas is about 20 cents and after expenses, credit card fees, rent, labor, depreciation, you usually make about five cents a gallon," said Lenard, to ABC 7.
Condos and apartment buildings are seen in downtown Vancouver on Feb. 2, 2017. (Photo: Darryl Dyck/CP)
While this new move could leave drivers running on empty in Vancouver, it's part of a trend the New York Times first pointed out back in 2007. Then, the paper chronicled the decrease in gas stations from within New York's five boroughs.
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