This seminar provides instruction in the appraisal of convenience stores. It assumes knowledge of and experience with basic appraisal theories and fundamental appraisal practices.
It is impossible for an appraiser to conduct a productive interview with a convenience store owner, buyer, or seller without a working knowledge of the industry. When discussing a convenience store appraisal with an owner-operator, the appraiser must realize that fuel margins are less than in-store margins, that a new store’s average cost exceeds $1 million, and that the owner-operator struggles to compete with hypermarkets and mass merchandisers.
Module 1: Industry Assessment
Module 2: Trade Area Analysis
Module 3: Site, Store and Fuel Service
Module 4: Valuation Assessment
Module 5: Case Study
These modules provide necessary guidance that experienced commercial appraisers need when working with convenience stores.
The modules in this seminar follow closely the Appraisal Institute’s book, Convenience Stores and Retail Fuel Properties: Essential Appraisal Issues. This seminar addresses the areas of weakness that most experienced commercial appraisers have with this type of property. The seminar also addresses retail site criteria, store building issues, the fuel service, and descriptions and treatment of store equipment.
Throughout the modules presented in this seminar, useful, up-to-date reference and statistical material is provided from industry sources such as the National Association of Convenience Stores, and Oil Pricing Information Service and CS News, a trade journal.
Finally, a case study gives students hands-on experience in applying the knowledge learned in the previous modules.
Describe the convenience store industry, current business trends, and the future direction of this retail trade channel.
Assess current trends in the convenience store industry and determine how they impact the operation and profitability of the subject.
Find vital sources of information and data that are needed in the appraisal of convenience stores, including leading trade journals and industry reports.
Describe the trade area, quantify supply and demand within the local market, and assess how these factors influence the operation and profitability of the subject.
Analyze supply and demand for convenience stores within the trade area.
Find sources of data and demonstrate analytical tools that are helpful in trade area analysis.
Examine specific considerations and issues that are unique to the appraisal of convenience stores.
Apply the cost, sales comparison, and income capitalization approaches to a convenience store appraisal.
Identify specific considerations that should be made in the three approaches.
Develop an allocation procedure for processing the income approach.
AI CE Credit for Designated members, Candidates for Designation and Practicing Affiliates
This program is approved for 1.25 hours of Appraisal Institute CE credit for every hour taken.