CHICAGO (Jan. 24, 2012) – Convenience stores represent a complex and fascinating retail channel that has responded to the economic challenges of the last decade by embracing new ideas, according to a new book by the nation’s largest professional association of real estate appraisers.
The second edition of “Convenience Stores and Retail Fuel Properties: Essential Appraisal Issues,” published this week by the Appraisal Institute, is intended to help appraisers of convenience stores keep up with these changes and understand how real estate value is created and estimated in the industry.
“This book should prove to be a valuable reference not only for real estate appraisers, but also for eminent domain attorneys, convenience store operators and corporate managers,” Appraisal Institute President Sara W. Stephens, MAI, wrote in the book’s foreword.
Among the more than 146,000 convenience stores across the United States, more than 117,000 sell motor fuel. In fact, 80 percent of all motor fuel sold in the United States is sold through the convenience retail channel. The Appraisal Institute’s new book discusses this business model of motor fuel sales combined with a limited selection of high-turnover merchandise.
Convenience stores are special-built properties that are designed to make money in only one way. They are not easily adapted to other uses. The fundamental determinant of value for a convenience store property is its ability to generate earnings.
The new edition of “Convenience Stores and Retail Fuel Properties: Essential Appraisal Issues,” compiled by author Robert E. Bainbridge, MAI, SRA, contains updated statistical data and information on important recent developments in the convenience industry, such as reduced fuel profits, competition from hypermarkets and an increased focus on food service. Newly added chapters discuss the fundamentals of economic theory as applied to convenience retail real estate, eminent domain issues and highest and best use essentials for convenience store sites.
The book also presents a prototype of a working commercial property automated valuation model. Links to online digital content, including interviews with experts and practical field examples, are also provided to illustrate the concepts discussed.
The second edition of “Convenience Stores and Retail Fuel Properties: Essential Appraisal Issues” (ISBN: 978-1-935328-23-0) is a 316-page soft cover book. It is available for $55 ($45 for Appraisal Institute members). Click here or call 888-756-4624 to order.
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The Appraisal Institute is a global membership association of professional real estate appraisers, with nearly 23,000 members in nearly 60 countries throughout the world. Its mission is to advance professionalism and ethics, global standards, methodologies, and practices through the professional development of property economics worldwide. Organized in 1932, the Appraisal Institute advocates equal opportunity and nondiscrimination in the appraisal profession and conducts its activities in accordance with applicable federal, state and local laws. Members of the Appraisal Institute benefit from an array of professional education and advocacy programs, and may hold the prestigious MAI, SRPA and SRA designations. Learn more at www.appraisalinstitute.org.
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