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There's no business like show business. As the movie exhibition industry continues to adapt to the influences of competitive media and other entertainment options, new megaplex movie theaters have put hundreds of smaller, older theaters out of the business. The valuation of theaters has changed too. Today appraisers are asked to provide valuations for the financing of new projects, the purchase and sale of existing properties, and tax management and financial purposes. The closing of older, smaller theaters creates opportunities for appraisers to perform highest and best use studies and valuations for tax appeals, dispositions, and redevelopment.
In The Business of Show Business, Arthur E. Gimmy, MAI, and Mary G. Gates, MAI, examine the movie exhibition industry and the niche property types it has spawned. The handbook begins with a survey of emerging trends and industry terminology and then moves on to discuss specific data on the exhibition industry and leading exhibitors, both of which are essential for any market analysis of a movie theater project and its feasibility.
A case study brings together all the data and applications discussed in the preceding chapters and illustrates how movie theater projects can be valued, focusing on the specific development costs applicable to these properties and the various sources of revenues and expenses involved in their day-to-day operation. Like other Appraisal Institute handbooks, this text is an easy-to-use, self-contained introduction to its subject. Readers of The Business of Show Business will learn about the vagaries of the motion picture business and the valuation challenges posed by these special-purpose properties.
About the Authors
Arthur E. Gimmy, MAI, is the president of Arthur Gimmy International, located in Corte Madera and Newport Beach, Calif. Mr. Gimmy has taught many appraisal courses, served on numerous local and national committees, and published nearly 50 articles on a wide variety of appraisal topics. He also has written several books, including Analysis and Valuation of Golf Courses and Country Clubs. In 1996 he was awarded the George L. Schmutz Memorial Award by the Appraisal Institute for his contributions to the advancement of appraisal knowledge.
Mary G. Gates, MAI, is an independent appraiser in Los Altos, California who has been appraising since 1988. Her appraisal assignments have included valuations of many special-purpose property types—e.g., development land, transportation corridors, and film postproduction studios. Most of her recent work has been for estate or litigation purposes. Ms. Gates has authored several articles on topics such as surgery centers, health care valuation issues, and the appraisal and analysis of special-purpose industrial improvements.