Gas Station Feasibility Study in the Detroit-Warren-Dearborn, MI Metro Area

Detroit: sizeable tickets, a modest place in the class order

Gas stations and truck stops are placed 15 of 39 among Detroit's asset classes, while the area stands 16 of 600 nationally for the class. Across FY2017 to FY2026 the file holds 67 approvals worth $68.1 million. At 0.53x, the location quotient is the clearest signal: stations take far less of the local book than of lending nationwide. The loans fall mainly in three counties, Macomb County, MI with 23, Oakland County, MI with 21 and Wayne County, MI with 18.

The median loan is $800,000, with the middle half running from $252,000 to $1.4 million. The ratio to the national class median is 0.76x, so Detroit loans come in smaller than the norm. Of the loans 58 use 7(a) and 9 use 504. Brand affiliation shows on 38.8% of the loans, the share flying a fuel supplier's flag.

Who holds the Detroit station loans

Leading the list, The Huntington National Bank holds 14 loans totaling $13.8 million. Fifth Third Bank follows with 8 loans worth $1.8 million, and First Internet Bank of Indiana appears with 5 loans worth $7.4 million, a small count with a large dollar total. For Detroit, these lines record loans held, not the habits of institutions.

Cancellations reached at least 17.3% for FY2017 to FY2024 approvals, which is a floor; the stricter ceiling and the charge-off rate carry no printed value here, and neither is zero. The yearly file shows 8 loans and $6.7 million in FY2017, 7 loans and $9.8 million in FY2018, 9 loans and $4.3 million in FY2024 and 8 loans and $13.5 million in FY2025. The class has limits of its own: truck stops and travel centers share an industry code with stations that lack a convenience store, it reflects whatever industry the borrower reported, and charging sites have no entry. A county match sits behind each Detroit figure, so unmatched loans are excluded.

What a Detroit gas station study must test

Fuel gallons and store sales depend on the corner, so the study should count traffic, nearby stations and big-box fuel, then test inside sales apart from gallons. Tank, line and canopy condition set both cost and closure liability, which makes an environmental review part of any file. Wholesale fuel swings against retail price, so coverage should be tested through a squeeze. If the owner buys the real estate, the appraisal must value land, building and fuel business separately, and a lender will ask who else could use the site if the business fails.