FROM FUEL TO FUTURE: REDEVELOPING AGING GAS STATIONS IN A CHANGING MARKET
December 2025 – Mary Doetterl, Research Director, Lee & Associates – Houston
Across the country, aging gas stations are emerging as valuable redevelopment opportunities for investors seeking well-located retail or mixed-use sites. These properties typically sit on high-visibility corners with strong traffic patterns, ideal ingredients for long-term commercial success. Yet repositioning old fuel sites requires careful attention to environmental, regulatory, and market-driven challenges.
The first major hurdle is environmental remediation. Older underground storage tanks often require removal or cleanup, and addressing potential soil or groundwater contamination can be costly. However, completing this process not only ensures safety but also unlocks redevelopment potential. Many states and municipalities offer grants or tax incentives that help offset these expenses and improve project feasibility.
Consumer expectations have also evolved. As Brandi Dees, Senior Director at Lee & Associates notes, “Consumer behavior is shifting more toward convenience, sustainability, and digital integration… while traditional fuel demand may decline, gas stations will continue to be relevant as multi-service hubs.” This shift opens the door to repositioning former stations into vibrant retail pads, food-forward convenience centers, or technology-enabled service hubs.
Zoning and permitting remain key considerations, and aligning with city revitalization or sustainability goals often accelerates approvals. Looking forward, the energy transition presents even greater potential. As Dees emphasizes, “The biggest opportunity lies in diversification. Alternative fuels and EV charging represent not just new infrastructure, but new customer segments.”
Ultimately, transforming outdated fuel sites into modern, future-ready destinations allows developers to convert environmental liabilities into thriving commercial assets.
About Lee & Associates – Houston
Lee & Associates – Houston is a fully-integrated commercial real estate company with unrivaled market knowledge and an unwavering commitment to integrity and excellence. Our business-minded brokers specialize in office, industrial, and land real estate investments. Lee & Associates – Houston is part of a nationwide network of brokers in more than 80 offices in North America. The brokerage is uniquely qualified to support our client’s real estate needs in Houston, across Texas, and throughout the US. For more information, visit lee-associates.com/houston.