Restaurant and Bar Property Appraisal
Appraisal services for restaurant and bar properties located in Adams, Arapahoe, Boulder, Broomfield, Clear Creek, Denver, Douglas, Eagle, Elbert, El Paso, Gilpin, Jefferson, Summit and Weld County.
We have experience with restaurant and bar appraisals within Colorado.
Whether you need to establish the market value of the real estate, business, furniture, fixtures and equipment (FF&E), or a combination of the sort, we can fill your appraisal needs.
We have appraised all major restaurant types including:
- Nationally branded restaurant operations
- Franchise locations
- Corporate locations
- Net lease properties
- Single locations
- Mom and pop
- Bar/tavern
- Nightclub
- Concert hall/entertainment center
- Quick serve
- Fast food
- Sit down
- And more…
Value Components
Most restaurant and bar operations have several layers of value at-play. These are the real estate (land and building), FF&E (furniture, fixtures and equipment), business enterprise (business value) and inventory (food and drinks). For some people buying and selling a restaurant property, the value of all these items can get lumped together into one “business for sale” or “restaurant building for sale”. Not only is the not recommended, but legally speaking, you are required to separate real and personal property items when recording the sale.
Real Estate Value
The real estate value component is simple. It is the market value of the land and building.
FF&E Value
Furniture and equipment represent personal property items and are typically straight forward to identify and value. They are removable from the real estate and are considered personal property that must be identified on a bill of sale when a restaurant property exchanges hands. Investment in equipment can be substantial for a restaurant, which is also why it is not recommended to lump this value into the overall property value. Fixtures are items that were once personal property that were attached to the land or building in a rather permanent-like manner. While this can be complicated if things get ugly, for appraisal purposes, this is usually straight forward. Trade fixtures are generally perceived to be part of the real estate, not personal property items (you wouldn’t take out the furnace if you moved, would you?).
Business Enterprise Value
Conceptually, business enterprise value is the value of the business operations itself. Technically, BEV is defined as:
The value contribution of the total intangible assets of a continuing business enterprise such as marketing and management skill, an assembled work force, working capital, trade names, franchises, patents, trademarks, contracts, leases, customer base, and operating agreements.
Source: Appraisal Institute, The Dictionary of Real Estate Appraisal, 5th ed. (Chicago: Appraisal Institute, 2010).
BEV is typically estimated on the actual or anticipated net operating income the business will generate. There are several methods to establish BEV, the most appropriate method is typically at the discretion of the appraiser. Note that if income is $0 or negative, there is no business enterprise value.
Inventory Value
Inventory value is the value of the inventory at the location. Inventory would typically be food and beverages for a restaurant.
Price & Time to Complete
To quickly and easily get pricing and turn around time for an appraisal needed for a restaurant, bar, fast food operation, or similar situation, please use our pricing form. Please be sure to include a phone number.
Additional Questions?
We are available to answer any questions you may have about the appraisal process. Contact Colorado Appraisal Consultants Here and submit your question, or pick up the phone and dial 720-315-2530.
