Argianas is Best-in-Class
Since fall is the peak season for auto sales, we are taking a closer look at auto dealership appraisals.
Did you know fall is a peak season for auto sales? That also makes it the perfect time to take a closer look at why real estate valuations for an auto dealership can be more complex than other special purpose properties. The team at Argianas & Associates completes four to five auto dealership appraisals each month. We have worked with dealers from high-performance luxury brands like Audi, to dependable domestic brands like Ford, to nearly every brand in between. And we can confirm that each auto dealer appraisal is different because each dealership is different.
There are some similarities, however. Auto dealers most often call us when they are building a dealership in a new location, considering a construction update at an existing location, or when it’s time to refinance their commercial mortgage. For them, like most special purpose appraisals, it is the level of detail that matters when working towards a value.
Alexander Argianas, Vice President and Corporate Client Liaison at Argianas & Associates, explains more, “Appraisals for auto dealerships are even more nuanced than most special purpose properties. One example is how the appraiser handles mezzanine SF area (structural or metal grated trade fixture). If the mezzanine is usable space and of concrete construction, it is usually considered real estate; however, if metal grating, which is common, the SF area associated with metal grated mezzanine/parts storage areas are not usually considered for inclusion in the building’s GBA. Other dealership nuances include the identification of real estate vs. trade fixtures/fixed equipment components (for example, drive-in bay car lifts).”
The experts on our team are high-performance appraisers who execute close to sixty auto dealer valuations per year. If you have any questions about any special purpose valuation, do not hesitate to give us a call at 630.390.0113. Or keep informed by joining our mailing list to receive our e-newsletter featuring case studies, industry events and news, as well as informational real estate valuation topics.