Insights

Is the express car wash industry dying or going through growing pains? In this article we will discuss recent events with larger operators classifying the Suds & Duds in the space. (“Suds” is a play on the word Studs, “Duds” is self-explanatory.) At the latter half of this article, we dive into the Whistle Express acquisition of Drive Brands.

Zips Car Wash, a major player in the U.S. car wash industry, faced financial challenges that led to its Chapter 11 bankruptcy filing on February 5, 2025. The company cited rising interest rates, higher labor costs, and increased competition as key factors, with about 900 new car wash sites opening annually in recent years, intensifying market pressures Zips Car Wash files for bankruptcy to cut $279 million in debt.

All has not been rainbows and butterflies for Mister Car Wash in the equity markets. While it still is one of the darlings in the space, Wall Street has not been too kind to the share price.

Generally, a Landlord is going to ask for some sort of guarantee whether you have three or thirty locations. If you’re a Tenant, it’s probably safe to say that you don’t jump out of bed excited to guarantee a Lease. The good news is, there are several alternatives to a blanket personal guarantee, and there are ways to limit personal liability.

Previously we wrote that Trump demanded Jerome Powell and the FED lower interest rates. It looks like he wasn't bluffing with the recent tariff announcements seemingly purposefully tanking the economy to force the FED's hand. The unprecedented tariffs were substantially higher than expected resulting in a market meltdown with major indices down roughly 10% or more over the past couple days. The thought process is increasing costs will drive lower consumer spending leading many to fear a recession and layoffs.

Despite uncertain macroeconomic conditions, retail vacancy rates remain at historic lows in the Great State of Texas. Leasing activity remains strong, however that can negatively impact a tenants site selection process because we are seeing competition on almost every marketed site. Below outlines how we help our retail clients obtain sites in tight markets that give them an edge over their competitors.