Memphis sits at the crossroads of Interstate 40, Interstate 55, and Interstate 240, which makes it one of the highest-traffic fuel corridors in the Mid-South. The result is a deep and active market for gas stations and convenience stores, from single-store independents to branded multi-site portfolios. Tennessee cap rates run roughly 5.4% to 5.75%, tighter than weaker national markets and a sign of real investor appetite. Gas Station Trader is the fuel and C-store practice of Eagle Nest Property Group in Dallas, with more than 250 million dollars transacted. We bring disciplined valuation, qualified buyers, and a process built specifically for fuel and convenience assets to every Memphis deal. See more across Tennessee.
The Memphis gas station market
Memphis is built for fuel retail. Interstate 40, Interstate 55, and Interstate 240 carry heavy commuter and freight traffic, and the city anchors a metro that supports both high-volume highway sites and dense neighborhood C-stores. A busy urban station here can move 100,000 to 150,000 gallons per month, well above the US average of about 4,000 gallons per day. The economics favor the store as much as the pump. In-store items carry 20% to 40% margins, and the C-store typically drives about 30% of revenue but roughly 70% of profit. That mix is why operators and investors compete for well-located Memphis sites. Browse our branded and NNN listings to gauge what trades.
Buying a gas station in Memphis
Most Memphis owner-operator purchases run through SBA 7(a) financing, which caps at 5 million dollars. Special-purpose fuel sites require a 15% minimum equity injection, meaning 10% to 15% down, with real estate terms up to 25 years and June 2026 rates around 9% to 11.5% APR variable. Conventional financing demands 30% to 40% down, and many banks avoid underground storage tanks due to CERCLA liability. Every SBA fuel deal needs a Phase I ESA (ASTM E1527-21) costing 1,800 to 3,500 dollars. Plan for closings of 30 to 90 days on SBA and 30 to 60 days conventional. Start with our buyer services, the due diligence checklist, and the valuation calculator.
Selling a gas station in Memphis
Selling well in Memphis starts with clean numbers and the right buyer pool. Business broker commissions run 10% to 20% on business-only deals and about 6% to 10% when real estate is included, with sale timelines of 3 to 6 months typical. Buyers price off EBITDA and verifiable fuel throughput, often valuing volume at 0.05 to 0.30 dollars per gallon of monthly throughput. A small-to-medium Memphis station owner often nets about 70,000 to 100,000 dollars per year, with stronger sites reaching 100,000 to 500,000 dollars. Presenting that earnings story clearly is what drives competitive offers. See our seller services, the sale-leaseback option for owner-operators, and the guide to increasing value.
Values and cap rates in Tennessee
Tennessee gas station cap rates run roughly 5.4% to 5.75%, tighter than weaker national markets at 6.0% to 6.5% or higher and close to the national average near 5.6%. Tenant credit drives a lot of that spread. Branded fuel cap rates range from about 4.83% to 5.20% for Wawa, 5.00% to 5.40% for 7-Eleven, around 5.13% for Murphy USA, and 5.35% to 5.65% for Circle K. On valuation, business-only Memphis stations trade at 2.5x to 4.0x EBITDA, combined business-and-real-estate deals at 4.0x to 7.0x, and premium real-estate-inclusive sites near 8x. Run the numbers with our cap rate calculator and read the good cap rate guide.
