Gas Station appraisals are specialized properties requiring careful consideration on the part of an appraiser. For consumers, stations are often fungible. Brand loyalty exists, but the nearest gas station will do when the tank gets to empty. As a real estate investment, operating gas stations are more complicated. Viable convenience store properties are almost exclusively sold as operating businesses. There are certainly exceptions. Some gas station properties are operated by tenants. Even in these cases the underlying performance of the station remains a critical concern for a gas station appraisal.
Sales Considerations & Gas Station Appraisal
Gross sales are one of the primary considerations in gas station and going concern appraisals. Not all gross sales are created equal. Profit margins can vary based on fuel types, gross volume and store sales margins. Many stores in high traffic areas favor fuel sales with a great share of gross sales from gasoline purchases. This can often result in lower operating margins to store owners. Store goods can provide higher margins, and having the right mixture of store and fuel sales is critical for most gas stations. It is just as important to consider the source of sales income as the total amount. Operating costs are also a critical factor. It is critical to understand typical operating costs for the market and specific property when completing a gas station appraisal.
Michigan Gas Station Appraisal
Timothy Cronkright and the Cronkright Company have completed numerous gas station appraisals in the metropolitan Detroit Market Area, Thumb Region,Flint & Tri-Cities Markets. We have also dealt with gas station appraisals in Lansing, Kalamazoo, Battle Creek & Northern Michigan. We maintain extensive market information for gas station properties. Our experience allows us to quickly analyze gas station operations and make reasonable estimates of performance where necessary. We use first party market research and offer considerable professional expertise. We can rapidly apply data-drive statistical methods. Using these tools, we can provide reliable and credible gas station appraisal services for your project.
Gas Station & Convenience Store Industry Resources
The Cronkright Company is a Lansing, Michigan based commercial appraisal firm with experience in a wide range of specialized property types, including gas station appraisals and going concerns. We also appraise numerous other property types which require allocations for business value and tangible assets.