Appraisal Articles 2019 Free Appraisal Articles for Appraisers and the Public
Buildings designed and utilized for an auto related use are special-purpose industrial improvements and they have limited marketability. Many have built in features like; power lifts, lube pits, high wall heights, grease traps, paint booths, office and reception areas. They are not buildings that can be easily modified or changed for an alternate use.
Auto service center buildings have some flexibility in their use. Buildings of this type can often be used for; auto repair, truck service, oil changes / lube, auto painting, transmission repair, auto window tinting, auto glass, auto sound installation, muffler centers and tire sales.
Like any other specialty property the supply and demand for auto service buildings and whether the market is in or out of balance, in any given market, is important information to analyze and relevant to their valuation. While location is of course a primary consideration, corner orientation, high traffic count and good visibility are not factors that are as important as they are for retail buildings, fast food restaurants and convenience stores.
The unit of comparison is usually used to analyze auto service buildings is the number of service bays and square footage. The construction quality, parking, drive through bays, auto storage and the number of the lifts / in-ground service improvements as discussed are all factors that contribute to auto service facility value.
Auto service buildings often have ancillary improvements that must be considered. I have worked on auto service buildings with cellular tower sites, attached car washes and large auto related retail areas.
When auto service buildings are part of a franchise operation a typical real property appraisal can become a "going-concern" appraisal that requires the analysis of the real property and the business entity.
For more appraisal information contact Glenn Rigdon, MA,MRICS, ASA a Las Vegas / Henderson Nevada appraiser via email or via his business website Horizon Village Appraisal (http://www.horizonvillageappraisal.com), or you can also click on “Contact Us” on the home page of this website.
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