Ice & Water vending machines as shopping center parking lot tenants - worth it?
Was driving our Tampa competitive set a couple weeks ago and spotted something at a neighboring center I don't see discussed much: Twice the Ice and Watermill Express operating as paying tenants in the parking lot.
Most people I talk to have never seen these in person. Even shopping center experts - they're not common in Miami, FL.
Twice the Ice — takes up roughly 4-5 parking spaces, rent probably in the $500–$1,000/month range
Watermill Express — 2 parking spaces, maybe $300–$600/month rent?
The income is there but modest. The bigger issue for me is the redevelopment risk. If you've got a 10-year lease on a vending machine sitting on surface parking and you want to go vertical someday you've got a problem unless your relocation clause is well constructed. The relo problem is 10X more if you got Tesla charging stations by the way.
I personally tend to pass on these deals for that reason, but I can see the argument if you're in a stable, no-redevelopment-planned asset and need the ancillary income.
Anyone here have these on their properties? Curious what you're actually getting paid.