Overview:
This seminar is expressly designed to augment the experienced appraiser’s general knowledge and skill. It provides instruction in the appraisal of convenience stores but it does not present material about basic appraisal theories or fundamental appraisal practices.

It is impossible for an appraiser to conduct a productive interview with the 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 of this seminar begins with a discussion of techniques used to assess and analyze convenience stores. Module 2 analyzes the supply of and demand for convenience stores in the subject’s local market. Module 3 explores specific valuation issues appraisers encounter in the appraisal of convenience stores.

Module 1 and 2 are designed to educate the appraiser about the industry and current convenience store business trends. They also provide the convenience store appraiser the resources to find more information about this industry. The valuation process can be considered only when the appraiser fully understands the economic and operational nature of convenience stores.

Module 3 provides an in-depth discussion of how the cost, sales comparison, and income capitalization approaches apply to convenience stores. The systematic and comprehensive analysis of the industry and local market presented in the previous chapters is equally useful for appraising proposed stores and existing properties. The current state of the industry, the economic conditions of the local trade area, and the adequacy of the site and improvements will ultimately determine how the appraiser estimates store profitability. This judgment is important to making the income allocation in the income capitalization approach.

Finally, we have a case study, which ties the whole material presented in these 3 modules. The case study is designed such that it gives the students hand on experience to apply the knowledge learned in the previous modules.


Syllabus:
Module 1: Industry Assessment
Module 2: Trade Area Analysis
Module 3: Valuation Assessment
Case study
Conclusion

Learning Objectives: