The Rise of Co-Tenancy in Automotive Real Estate

November 7, 2026 - 22:45

Co-tenancy is becoming an interesting trend in automotive real estate, similar to its established role in retail. In retail, businesses often thrive by being near an anchor store, which drives customer traffic. This strategy has been effective for years, but it has not been widely adopted in the automotive sector-until now.

Car dealerships have long recognized the benefits of clustering together in what are known as auto malls. This strategy attracts customers who are specifically looking to make a purchase, creating a bustling environment that benefits all businesses involved. auto parts retailers are beginning to open larger hub stores, strategically located near repair shops and collision centers. This co-location enhances part availability and speeds up delivery, making these hub stores more profitable.

A prime example of this trend can be seen in Mt. Pleasant, Pennsylvania, where a former home improvement store has been transformed into a space housing both an AutoZone and a Clean Express car wash. This setup not only maximizes the use of the property but also creates a one-stop shop for customers.

While automotive co-tenancy may not reach the same prevalence as in retail, its potential is clear. As the industry evolves, we may see more adaptive reuse projects that incorporate this concept, reshaping the landscape of automotive real estate for the better.