Over the last 42 years, I’ve had countless new laundry investors and existing store owners contact me for help finding new locations – more precisely, great locations.
Although I would love to take out a magical crystal ball and have such a location jump out in front of our eyes, the hard reality is that it requires countless hours of hard work and dedicated research to find that “perfect laundromat site.”
Given that, let me share a few key points to consider when seeking just the right location:
Travel Time – Begin by looking at areas that are within a reasonable travel time from your home or office. In the event of an emergency, you don’t want to have to travel several hours to get to your laundromat. For a first-time investor, I would recommend a limit of one hour to travel to the location.
Visibility and Access – You want a store that is clearly visible from the street. Additionally, you don’t want a location where it’s hard to get in or out of the parking lot. Is there a traffic light to assist in making a left turn out of the parking lot? Is the parking lot well-lit? Is the parking lot safe? Is there a marquee on which to place a readable sign? Can you see the laundromat sign easily? Can customers park their vehicles and transport large bundles of laundry in and out of the store safely? Do customers have to walk a relatively long way to get into the store?
Demographics – These are a critical tool to help you investigate the local area’s population, housing types and income – from singles to families, the number of people in each household, the number of renters, and so on. Use those demographic numbers as a guide; however, you also need to drive the area and evaluate it at all hours of the day. This will give you an idea as to the typical activity going on in that neighborhood.
Sizing – How big or how small to build a store. Today, smaller 1,500-square-foot laundromats are fading away. Of course, building costs and rents also are skyrocketing. In my opinion, 2,500 to 3,000 square feet is a comfortable “beginner store” these days. Buildout costs for interior construction can start at $100 per square foot and go up from there. Acceptable rents range anywhere from $12 per square foot to close to $40 per square foot. Beyond that point, you may consider purchasing the building. If not, be sensible in your lease negotiations; clearly, the longer the lease with the least increases is the best deal.
Type of Location – Are you looking for a free-standing building or a storefront in a strip center? I recommend a laundromat in a strip center, with the neighboring businesses being “fast-in-and-out” stores. For example, if your parking lot is small and you have a nail salon next door to your laundromat, that spot will be taken for at least an hour, thus limiting a spot for a potential laundry customer. Ideally, try to find a strip center location that contains such businesses as supermarkets, dollar stores, convenience stores, and fast-food restaurants or pizzerias. Above all, no bars. A bar can make people uncomfortable and likely could deter business away from the laundromat.
These are just a few helpful hints for finding the perfect laundromat location. All in all, the best advice is to use your common sense and to be confident in your ultimate decision.
