Feature article originally published in The Appraisal Journal Spring 2013 issue.
This article discusses factors and data that need to be considered in a market analysis and valuation of a movie theater.
The movie theater business is in troubled times, with competition from many viewing alternatives and values dropping for some properties. The exhibition business, and development of megaplex theaters, appears to have surpassed its stage of maturity; now obsolescence is a consideration.
The article examines movie theater trends related to venues, box office revenue, and attendance. A case study example of a market analysis for a multiplex theater is presented. The article also discusses the project development factors to include in a highest and best use analysis. An approach to income analysis is also presented.
This article updates the 1999 Appraisal Institute text The Business of Show Business: The Valuation of Movie Theaters.
Arthur E. Gimmy, MAI
Appraisal Institute Individuals can view and download the entire current issue and past issues at no charge at http://www.appraisalinstitute.org/taj/default.aspx (Log-in required.)