PWS laundry has started a significant expansion with plans to open 30 to 50 new locations across the country. Despite the pandemic and economic turmoil, laundromats offer strong returns and fundamentals. They are also a great opportunity for retailers looking for stable and flexible tenants.
"The foundations of laundromats are stronger than ever" Brad Steinberg, Co-President of PWS Laundry, says GlobeSt.com. "They have always brought the operators a good return on investment, and since the landlords are more flexible with the rental conditions and more generous in improving tenants, the profitability has become even better."
Few tenants are immune to the effects of a recession, but laundromats tend to be resilient to market dislocations. “While laundromats can see some sales declines in a weak economy or pandemic, they have proven to be more resilient than most other companies. They remain open and have been classified as an essential company because of the service they require, ”says Steinberg. "This stability is attractive to landlords who have vacancies in their centers."
Current market dynamics make this an ideal time for the company to expand. The company could benefit from flexible landlords and cheaper rental terms and rates. "One of the main reasons for a larger expansion is that many landlords have become more flexible," says Steinberg. “The rents have fallen a little and the landlords are ready to contribute to the expansion costs. Many landlords are convinced of the benefits of laundromats. They pay their rent, are Amazon and pandemic safe, attract new customers to shopping malls and will last for over 20 years. "
PWS Laundry is expanding in every market across the country, specifically focusing on markets with high density and high concentration of tenants. In terms of physical space, the company is also flexible. "We are open to all types of buildings," says Steinberg. “Laundromats have been successful as free-standing tenants in both small strips and large food centers. The great thing about laundromats is the flexibility in the spaces they occupy. We just need good parking, good visibility and good demographics. "