PWS Laundry has launched a major expansion with plans to open 30 to 50 new locations nationwide. Despite the pandemic and economic dislocation, laundromats provide strong returns and fundamentals. They are also a good opportunity for retail owners looking to secure sable and flexible tenants.
“The fundamentals of laundromats are stronger than ever,” Brad Steinberg, co-president of PWS Laundry, tells GlobeSt.com. “They have always provided a good return on investment for operators, and with landlords being more flexible on lease terms and more generous on tenant improvements, the economics have gotten even better.”
Few tenants are immune to the impacts of a recession, but laundromats tend to be resilient through market dislocations. “While laundromats can experience some revenue dips in a down economy or pandemic, they have proven to be more resistant than most other businesses. They remain open and in fact have been classified as an essential business because of the necessary service they provide,” says Steinberg. “This stability is attractive to landlords that have vacancies in their centers.”
The current market dynamics make this an ideal time for the company to expand. The company could capitalize on flexible landlords and more favorable lease terms and rates. “One of the main reasons we are looking at a major expansion is because many landlords have become more flexible,” says Steinberg. “Rents have come down a bit, and landlords are willing to contribute to build-out costs. Many landlords have been convinced of the benefit of laundromats. They pay their rent, they are Amazon and pandemic resistant, they attract new customers to shopping centers, and they will be around for 20-plus years.”
PWS Laundry is expanding in any market throughout the country, focusing specifically on markets with density and a high concentration of renters. In terms of the physical space, the firm is also flexible. “We are open to all types of buildings,” says Steinberg. “Laundromats have been successful as freestanding tenants, in small strips as well as large grocery anchored centers. The great thing about laundromats is the flexibility in the spaces they occupy. We just need good parking, good visibility and good demographics.”
The Link LonkAugust 28, 2020 at 03:00PM
https://www.globest.com/2020/08/28/pws-laundry-launches-major-expansion/
PWS Laundry Launches Major Expansion - GlobeSt.com
https://news.google.com/search?q=Laundry&hl=en-US&gl=US&ceid=US:en
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