On the surface, it may not seem like a good time to invest in gas stations.

Elevated and volatile gas prices, driven by a supply shock stemming from the ongoing war in Iran, have captured national attention as frustrated drivers face increasing financial pain filling up at the pump. Oil executives are warning that a fuel crisis has arrived.

But the unpredictability hasn’t deterred investors eyeing the country’s fuel-centric real estate.

Instead, money is chasing gas stations and convenience stores, with cap rates in the sector among the tightest in retail. The disconnect between elevated fuel prices and unbothered investors is shaping deal activity nationally, as buyers lean on diversified in-store revenue to bet that nonfuel income holds up amid the uncertainty.

“Usually, it's quite calm. It's quite a boring industry,” said Michal Mohelsky, founder and lead analyst at MMGC Invest, which does feasibility studies for gas station investors. “Right now, everything is going through the roof.”

Cap rates for the sector sit about 50 basis points above the 10-year Treasury yield, and top credit leases are pricing at or below the Treasury yield, according to data from MMGC Invest.

Average convenience store cap rates are the tightest of the 17 net lease sectors tracked by B&E, at 5.63% in the second quarter of 2026 and about 5.57% a year ago. That's a slightly lower cap rate than grocery store and supermarket properties at 5.66%. It's well below the pharmacy, discount store and early learning sectors, which had average cap rates above 7% in Q2.

The average price of closed sales is about $4.6M, or around $1,400 per SF, according to an August report from Northmarq.

CBRE Vice President Sai Thakor, who has been in the industry in Houston for seven years, said sites that were selling for between $1.5M and $2M when he started are now trading for between $4M and $5M.

National chains are looking to expand, and elevated fuel prices aren’t necessarily a major factor in higher sales prices.

“When you see gas prices go up, that doesn't essentially mean there's more margin, unless you have really large tanks underground and you already loaded up when the cost was a little bit lower,” Thakor said.

The large operators focus on existing nonfuel revenue, whether that is a unique food and beverage offering or something on-site like a McDonald’s or a Starbucks.

That’s because profit from in-store food service sales is a major driver in high-performing stores. The top decile of U.S. convenience store operators by operating profit generated more than seven times the food service sales of the bottom decile in 2025, according to an industry report.

“I'll be honest, I don't know how much gas prices are right now. It doesn't affect my conversations that I have with my buyers and sellers," said Lee & Associates Senior Vice President Brandi Dees, who has worked in the industry for more than two decades.

Thakor said he is doing a lot of deals with national operators because they’re acquiring heavily — and in all-cash deals. Many are publicly traded and have to keep acquiring to meet allocation requirements, he said.

A large contributor to the uptick in gas station and convenience store sales is the 100% bonus depreciation law passed in July 2025. The law enables investors to deduct the full value of equipment improvements and purchases upfront as opposed to over the lifetime of the investment — particularly attractive in an equipment-intensive sector like gas stations.

“Bonus depreciation helps juice up returns,” said Sage Chaffin, senior investment analyst at Northmarq.

In a market with increased fuel supply costs, Chaffin said smaller operators often have a harder time competing with bigger players who have more control over their pipeline.

Over 116,000 convenience stores sell fuel in the U.S., and about 61% are single-store operators, according to Northmarq.

“We're seeing more and more of these mom-and-pop operators wanting to sell just because they can't keep up with pricing,” Chaffin said. “They can't keep up with inside and outside costs, and so they'd rather sell to a larger platform that has more control over that cost.”

Larger operators can also staff multiple locations more efficiently to cut labor costs, with one person often overseeing more than one store.

Gas prices are having a modest effect on the inventory investors purchase after closing, Thakor said. Historically, the average gas station would have between $100K and $150K worth of inventory, but now that figure is between $200K and $250K, Thakor said.

“They're still gonna close and cut the check,” he said. “It just burns a little.”

Regional operators are cashing in on sale-leaseback opportunities. Convenience store REIT Getty Realty’s $260.9M sale-leaseback of 41 Refuel stores in the Carolinas, Texas and Mississippi at the end of September was the largest deal of the year. Refuel locations average nearly 5K SF and 2.5 acres per site and have hot food offerings or branded restaurants, according to a release.

The range of investors in the sector is varied, including high net worth individuals, family offices and large institutional funds, Chaffin said.

“Those guys like investing in convenience stores,” he said. “There's volatility in fuel pricing, but by and large, convenience stores are, I would say, recession-resistant.”

MMCG Invest's Mohelsky said the gas station sector usually accounts for roughly 10% to 15% of business. Now, it makes up about 60% of the company’s production.

Smaller, older sites used to be easier to sell because investors were more willing to find ways to add nonfuel revenue to those sites and buy them as a land play, Lee & Associates' Dees said. Now, investors won’t spend capital figuring out how to add nonfuel revenue unless the site is already making money.

Dees said her deals are more significantly impacted by factors such as nearby competitors setting up shop and low sales inside the convenience stores attached to the gas stations. Gas prices fluctuate too frequently to have a significant negative impact on a sale, she said.

Lenders need to be cautious about how they model financing new acquisitions because the margins are floating and changing, Mohelsky said. The operators who take advantage of the current window of opportunity to sell at elevated prices could do well for themselves, he said.

“Who might be the winner?” Mohelsky asked. “Long term might be someone who's trying to get rid of his business and get it at the right valuation.”