Repurposed Real Estate Drives Expansion of Convenience Stores and Fuel Stations

April 25, 2026 - 18:28

Last week, convenience store chain Yesway raised $280 million in an initial public offering as it pursues plans to develop approximately 130 new c-stores by the end of the decade. The company joins a growing list of operators aggressively expanding their footprints through an unconventional strategy: acquiring and repurposing vacant commercial properties.

Publicly traded c-store chains are seeing strong returns from their expansion efforts. Casey’s General Store shares have climbed 44% year-to-date, while Murphy USA stock has increased 32% since January. Privately held chains including Wawa, Sheetz, QuikTrip, and RaceTrac are also adding new locations at a rapid pace.

But traditional c-store operators are not alone in this push. Market Force Information reports that Big Box retailers now control 35% of the U.S. fuel market. Costco, Walmart, Meijer, BJ’s Wholesale, and Kroger operate fuel stations at most of their stores and continue seeking opportunities to add more.

The key to this expansion lies in acquiring vacant, dilapidated, or functionally obsolete properties. Office buildings, former bank branches, abandoned drugstores, and shuttered retail locations are being transformed into fueling stations and convenience stores.

In Springfield, Virginia, Costco paid approximately $6.6 million for a vacant two-story office building adjacent to its wholesale club. Rather than occupying or leasing the space, the company is developing a fueling station with 12 gas pumps and an 8,100-square-foot canopy. Fairfax County planners welcomed the project for adding parking, reducing congestion, and removing unused office space from the market.

Michigan-based Meijer followed a similar approach in Grand Rapids, purchasing a 130,000-square-foot former church headquarters for $7.4 million. The 70-year-old building had been abandoned due to failing systems and maintenance burdens. Meijer demolished the structure to relocate its gas station across from an existing supercenter, installing 14 pumps and a 5,600-square-foot Meijer Express convenience store.

Kroger turned to a vacant bank branch in Orion Township, Michigan, after city officials repeatedly denied requests to develop a fuel center in its parking area. The company acquired an adjacent former PNC Bank property and plans to raze it for a 16-pump fueling station.

Former drugstore sites have proven particularly attractive to c-store operators. These properties typically sit on one to two acres at premier intersections with high traffic flow and prominent signage. While most c-stores are no larger than 5,000 square feet—less than half the size of a typical Rite Aid or Walgreens—operators are finding creative solutions.

One Michigan independent operator plans to divide a former drugstore into multiple suites and lease the extra space. Now & Forever, a regional chain, converted a 14,000-square-foot former Walgreens near Houston into an oversized c-store with expanded food and dining options, adding fuel pumps in the parking lot. Murphy USA acquired a former Rite Aid in Bay City, Michigan, solely for the land, planning to demolish the building and construct a new $3 million c-store with four rows of pump islands.

RaceTrac is pursuing one of the most ambitious repurposing projects yet. The company acquired a former Barnes & Noble store in Cumberland, Georgia, near the highly trafficked intersection of Cobb Parkway and Akers Mill Road. The 20,000-square-foot bookstore, roughly four times the size of a typical RaceTrac location, will become a flagship site featuring 16 fueling stations, 12 EV charging spots, a full-service restaurant, corporate offices, meeting space, and a chef’s kitchen.

Costco is also making headlines with standalone fuel stations. The company acquired a former Bed Bath & Beyond location in Mission Viejo, California, paying approximately $14.4 million for the 35,000-square-foot building on seven acres along Interstate 5. The site will become Costco’s largest fueling facility with 40 pumps and its first standalone station not adjacent to a wholesale club. In Honolulu, Costco will participate in the ʻŌlauniu at Kapālama Kai redevelopment, which includes a standalone fuel station with 20 fueling islands and 40 pumps, alongside new retail space, restaurants, and offices.