CHICAGO (Jan. 6, 2022) – Appraisers who value restaurant properties should fully understand the opportunities and risks inherent in restaurant operations and how these factors affect real property value, according to an article published this week in The Appraisal Journal.
The Appraisal Journal is the quarterly technical and academic publication of the Appraisal Institute, the nation’s largest professional association of real estate appraisers. The materials presented in the publication represent the opinions and views of the authors and not necessarily those of the Appraisal Institute.
“Appraising Restaurants: Highest and Best Use Analysis,” by Bradley R. Carter, MAI, and J. Tyler Leard, is from the Appraisal Institute’s book, “Guide to Appraising Restaurants,” and informs readers about the life cycle of restaurants and how the stage of economic life affects the property’s highest and best use and ultimately its real property value. The article takes a special focus on restaurant physical characteristics, leases, revenue and the most likely buyers of such properties.
Read “Appraising Restaurants: Highest and Best Use Analysis” in the Fall 2021 issue of The Appraisal Journal.
“Wind Project Valuation and Repowering,” by Richard K. Ellsworth, revisits an emerging topic addressed in the Winter 2021 issue of The Appraisal Journal: valuation of maturing renewable energy projects. In the new article, the author describes factors that impact the valuation of wind projects that are being considered for repowering. Repowered projects may be eligible for federal tax credits depending on the percentage of the project that is new after the repowering.
“Valuation of Accessory Dwelling Units,” by Sandra K. Adomatis, SRA, is based on the Appraisal Institute’s seminar, “Valuation Overview of Accessory Dwelling Units.” The article discusses the emerging acceptance of this housing choice and its growth due to excess housing demand and decreases in housing affordability.