Convenience Store Appraisals
Convenience store appraisals involve a retail business with primary emphasis placed on providing the public a convenient location to quickly purchase from a wide array of consumable products (predominately food) and gasoline services. While such operating features are not a required condition, most convenience stores have the following:
Appraising a Convenience Store Characteristics
- A building with typically less than 5,000 sq. ft.
- Auxiliary parking/or convenient pedestrian access
- Extended hours of operation
- Stock at least 500 units
- Product mix includes grocery items, beverages, snacks, and tobacco
Upon appraising convenience stores and fuel properties, it is also important to analyze the trade area.
Appraising a Convenience Store Trade Area
The trade area is the geographic area within which the subject convenience store competes for business. The industry typically recognizes a 2-mile radius in urban areas. In small rural communities, the trade area often covers a major portion of the town or even an entire city. Typical features in such property profiles include:
- store size
- external appearance
- overall pricing
- fuel branding
- fuel service
- food service
- weekly hours of operation
- misc services
- and restrooms
These physical characteristics are important to analyze the demand and supply of such products.
Appraising a Convenience/Fuel Store SSSI
The Service Station Saturation Index or (SSSI) is an important tool in analyzing the retail fuel demand for a given neighborhood. It determines the percentage of convenience stores that an area can and should have to provide adequate service at a profit. A balanced market will have a SSSI of 100. If the SSSI is 200, then there are twice as many stores as can be supported.
Upon first appraising the property, site assessment is an integral part of the appraisal. It includes the analysis of its access, forecourt (which is an area where fuel dispensers and canopies are located), store envelope (which includes the building footprint), and location criteria. Site and criteria vary from company to company, depending on the company’s target market and business mall.
If you are looking for an appraisal of your convenience store, please contact Valentine Appraisal and Associates.