Gigafactory Adjacent - Tesla Sales & Service Center
Gigafactory Adjacent Tesla Service Center
Marketing description
Cushman & Wakefield is pleased to present the opportunity to acquire a 42,318± square foot single story service location on a 7.03 ± acre lot leased to TESLA, in Buffalo, NY located across the street from Tesla Gigafactory 2.
The Tesla service location at 1216 South Park Ave in Buffalo, NY is a modern, fully improved facility positioned directly across from Tesla Gigafactory 2, offering exceptional visibility and strategic access. The property has undergone approximately $3 million in recent renovations, supporting state-of-the-art service operations and efficient throughput in a high-demand, supply-constrained market.
Tesla has demonstrated a long-term commitment to the Buffalo market, investing approximately $350 million into Gigafactory 2 improvements in 2024. The company’s continued presence is further supported by Buffalo’s attractive cost of living, which enhances employee retention and operational efficiency.
Serving as a critical hub for Tesla owners across a broad regional trade area, the site benefits from consistent traffic, strong brand alignment, and a layout designed to support streamlined vehicle servicing. Its positioning within a major employment corridor and adjacent to a key production facility further reinforces its role as a high-performing asset within the regional automotive services landscape.
This property is listed in conjunction with New York-licensed real estate broker Cushman & Wakefield US Inc.
Investment highlights
- S&P BBB Credit – Corporately guaranteed lease. Tesla currently maintains a stable “investment-grade” credit rating across the major ratings agencies.
- Tesla Gigafactory 2 next-door - this service location at 1216 South Park Ave is highly strategic given its direct adjacency to Tesla Gigafactory 2, placing it within a built-in demand driver tied to one of the region’s most significant advanced manufacturing hubs. This proximity to Tesla enhances long-term relevance, supports consistent service traffic, and strengthens the asset’s value through alignment with a globally recognized brand.
- Only Tesla Service in the Region - This location represents the only Tesla service center in the region, serving a broad trade area spanning from Canada south to the next nearest facility, creating a uniquely captive customer base with limited alternatives. As a result, the asset benefits from consistent, necessity-driven traffic and a critical role in supporting Tesla owners across a wide geographic footprint.
- Opportunity Zone - The property is located within a designated Opportunity Zone, providing investors with the potential for meaningful tax advantages, including deferral and possible reduction of capital gains taxes. This designation can enhance overall returns while positioning the asset in a targeted growth area benefiting from ongoing public and private investment.
- $3M In Tenant Investments - Tesla has invested approximately $3 million into renovating the property, demonstrating a strong long-term commitment to the location and enhancing the overall quality of the asset.
- 3% Annual Rent Bumps - Large yield growth throughout the lease term with 15% increases in the options.
- 700,000+ residents within a 10-mile radius, providing a deep and dense consumer base across the greater Buffalo metro area.
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