How current real estate prices are affecting the expansion of Price Simms Automotive Group

A development project with a price tag close to 270-million dollars is waiting for approval in Silicon Valley. The Toyota of Walnut Creek is a high-volume store and by 2026, it will become even larger as a 165-thousand square foot, full-service Toyota store with rental housing on top. On today’s show, we’re pleased to welcome Adam Simms, CEO of Price Simms Automotive Group to discuss the proposed project and where things stand today.

Simms begins the conversation about the impact real estate has had on his dealership. Although he purchased the dealership in 2017, real estate has skyrocketed with a 40% increase in construction, making dealers figure out alternatives to building brands. He says that it’s been about a two-year process but the city leadership has been positive, along with community benefits and learning ways to operate the business.

When asked the big question about showrooms being relevant in the future to use for the OEM’s, Simms talks about the changes that are happening today. Some people want to do a transaction online versus someone who may want to do a portion online but then come inside.

He says when you think about all of what dealerships do to deliver ownership experience if they’re not in a position to freeze the industry, they need to press on.

When asked about being on the hunt for more dealerships, Simms stated that you’re either going to get bigger or smaller but you can’t stay the same.

Simms says there are many factors that play into getting more dealerships. Dealers have to take a look at communities and how they are developing, residential density and look to see if there are more opportunities to invest in other real estate.

When asked, what were some of his concerns moving forward with Toyota as well as TMS, Simms expressed, they were making a commitment to Toyota. They wanted to deliver a facility in two years with the best intentions, but instead, it’s going to be five years. Simms also said that Toyota was flexible.

Simms ended the conversation by stating that there will be more locations opening around the country, but there are going to have to take creative approaches to solve for presence. As for Simms Automotive Group, they will be making bold moves, soon.

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