General Advice for a Food Truck Park

Member since 2021 · 3 posts · 2 votes

Howdy Everyone,

I am finally looking to take my first steps into real estate by setting up and leasing spaces in a food truck park. The land belongs to my dad but he is allowing me to do all of the footwork to start up and operate the park. I know the land is in a good spot due to the growth around the area. We already have one "tenant" (I use quotes because it's a friend's food trailer) and are looking to add a couple more spots and make the property more "official" as a food truck park. I am nervous going into this because I am not sure what items I need to be sure to include in a contract or how to screen tenants.

I am wondering if anyone has any general advice or tips when going into this venture that they would be willing to share?

Thank you for your time in advance.

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Scott E.

Contractor · Scottsdale, AZ · Member since 2010 · 2k+ posts · 3k+ votes

Very interesting. I don't think I've ever heard of anybody start a venture like this but I like the idea. I have been to a few of these parks before (as a customer).

Are you looking at allowing these 'tenants' to park their food trucks on your lot full time?

The biggest hurdle that comes to my mind is getting the city on board. Not sure what permitting looks like for something like this. But it's a unique use for the property and I could see there being a lot of red tape getting it approved.

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Scott E.
Contractor · Scottsdale, AZ · Member since 2010 · 2k+ posts · 3k+ votes
3y
Very interesting. I don't think I've ever heard of anybody start a venture like this but I like the idea. I have been to a few of these parks before (as a customer).

Are you looking at allowing these 'tenants' to park their food trucks on your lot full time?

The biggest hurdle that comes to my mind is getting the city on board. Not sure what permitting looks like for something like this. But it's a unique use for the property and I could see there being a lot of red tape getting it approved.
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Michael Wright
OP
Member since 2021 · 3 posts · 2 votes
3y
Howdy Scott,
I would leave it up to the tenants as to whether they want to leave their vehicle on site but the option is open. All of the parks that I have seen allow the trucks/trailers to park full time. The friend that has a spot now runs a coffee shop out of a trailer and will occasionally go to events and such on weekends.
As far as permitting...where the property is located, we are out of city limits. The lot is located next to our family business office which already has power, septic and well. I tried talking to the county about what I need and I was not able to get much information other than I would need a permit if I wanted a new electric service just for the park.
I have power ready to handle a couple lease spaces and I would like to build up infrastructure with time to supply water as well as shaded sitting areas, etc...
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Greg M.
Rental Property Investor · Los Angeles, CA · Member since 2017 · 2k+ posts · 5k+ votes
3y
This is not something that you should do by yourself. There is extreme liability on many issues. You absolutely need to find a lawyer that has set up these contracts before.
I'm curious how you've come to the conclusion that it is a good area for this based on growth of the area. It needs to be walking distance to a large supply of customers. Sporting / music events bring these crowds. Large office spaces bring these crowds.
Have you given any thought to things like percent of sales you will charge, what types of foods each truck can have (don't want competing trucks), minimum sales requirements to remain, allowing alcohol sales, who pays for trash services, standardizing prices for things like water bottles, etc? You should find someone that has done this and see if they will mentor you.
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Eliott Elias
Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
3y
Talk to the city & look at your competition. Are they booked with food truck vendors? What do they charge? Having a food truck park should only come about to pay your holding costs to keep a desirable piece of land.
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Matthew Paul
Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes
3y
You will need some lighting , portable restrooms , water would be nice , gravel for parking areas , tables . Just to start .
1 Reply
Scott E.
Contractor · Scottsdale, AZ · Member since 2010 · 2k+ posts · 3k+ votes
3y
Quote from @Michael Wright:

Howdy Scott,
I would leave it up to the tenants as to whether they want to leave their vehicle on site but the option is open. All of the parks that I have seen allow the trucks/trailers to park full time. The friend that has a spot now runs a coffee shop out of a trailer and will occasionally go to events and such on weekends.
As far as permitting...where the property is located, we are out of city limits. The lot is located next to our family business office which already has power, septic and well. I tried talking to the county about what I need and I was not able to get much information other than I would need a permit if I wanted a new electric service just for the park.
I have power ready to handle a couple lease spaces and I would like to build up infrastructure with time to supply water as well as shaded sitting areas, etc...

It's a very cool idea and I wish you the best. You're in a fortunate situation where your dad already owns the land, which I assume means no holding costs right out of the gate. So even if profits are slow moving the first few months, you'll be able to get through that.

As @Greg M. said there are definitely liability concerns here. Just use your imagination.. A trip and fall, food poisoning, ada compliance, etc. Talk to a lawyer and set everything up to make sure you don't get sued.
If nobody from BP comes along who has experience with this, try to find a somebody out there in the world who has done this before. If there are other food truck parks locally, figure out who owns them. Or check out other entrepreneurial forums online. You've gotta find somebody who has more experience with this and 'pick their brain' for 30 mins.
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Michael Wright
OP
Member since 2021 · 3 posts · 2 votes
3y
Thank y’all for all your input and advice. I really appreciate it. I have already considered that this can involve a lot of risk which is why I am reaching out. I do have a meeting with a lawyer coming so hopefully they can help me out with the liability aspect of this.
It's a situation where the land has been owned for a long time and neighborhoods have been springing up all over the place within the last five years so it would be a waste to NOT do something with the property. I have seen a lot of food trucks and food trailers pop up around the area, typically parking in a business parking lot or wherever they can find a spot. For example, the other day I went to a large big box store and saw 3 food trucks parked out front. With rising operating costs, food trucks seem to be a more economical option for people looking to pursue their food service dreams.
Just my thoughts on it.

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Rachel H.
San Antonio, TX · Member since 2009 · 3k+ posts · 1k+ votes
3y
@Michael Wright Interesting idea! I think it can work in the right neighborhood and with enough demand. Most times, food trucks that have been successful have steady clientele usually involving corporate-owned businesses and providing food service to the employees who work in the area.
Would be interested to hear about your progress. Best of luck!
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Iman Ibrahim
Member since 2024 · 1 post · 0 votes
2y
Hi @Michael Wright I have been dreaming about starting a food truck park for years. I would love to hear your experience and how is your start up going.
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Colleen F.Pro Member
Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
2y
@Michael Wright Make sure government is on board. We have one being developed along the Apache trail, not far from our AZ home that hasn't opened in I have to guess about 3 years. We were talking to the owner and the county wanted a different entrance and some other changes but another AZ season has come along and they still aren't open. Great location. I would just be clear about requirements and your timeline.
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Susan ThelenBusiness Member
Real Estate Agent · Mesa, AZ · Member since 2020 · 91 posts · 39 votes
2y
Wow! This is such a great idea and opportunity for you. Best of luck!
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Bruce WoodruffPro Member
Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
2y
There is a block in downtown Prescott AZ that recently put in a Food Truck Park. I have not been there as I moved away from the area before it opened...but I watched with interest as it was built. This is not a small endeavor you are looking to undertake, I mean I suppose you could do it cheap, but I was impressed with the quality of the build out.
They poured concrete pads with hook-ups for each truck...kinda like an RV park. Really interesting how they did it.....I found an article about it - here:
https://www.quadcitiesbusinessnews.com/food-park-to-be-devel...
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