Retail Appraisal Services
From free-standing properties and convenience stores to restaurants and auto dealerships, the retail segment comprises approximately 25% of all real estate. In valuing properties within the retail vertical, appraisers consider location, traffic counts, and ultimately how properties are being used by and how their attributes may impact the customer experience.
Strip Center and Mall Valuation
Most strip centers are between 5,000 and 25,000 square feet and occupied by a small number of tenants without the presence of a large anchor tenant. Larger malls and outlets are often between 400,000 and 1,500,000 square feet, often with a mix of indoor and outdoor space anchored by large tenants and surrounded by a mix of restaurants and other attractions. Among the most important features for such properties is proximity to highly-trafficked areas, parking, and condition of the property.
As consumers turn to online shopping and retailers face lower customer traffic, mall valuations have fluctuated widely leading to reassessments, closures, and general volatility in the space.
Community and Neighborhood Centers
Community centers are typically recognizable by having large anchor tenants surrounded by smaller retailers in suburban locations. These large tenants may include Walmart or Target and generally are within 10-15 of residential communities. Neighborhood centers, similarly, are focused on serving everyday needs of residences in close proximity to the property. Unlike community centers, neighborhood centers are often defined by having a grocery-anchored shopping center. The most common grocery tenants are Kroger, Farm Fresh, Food Lion, Harris Teeter, Publix, Wegman’s, and others.
Most neighborhood centers are between 50,000 and 100,000 square feet compared to the larger footprint of community centers in the range of 100,000 to 250,000 square feet of retail space.
Big Box Retail Appraisal
Freestanding big box retailers most commonly occupy about 50,000 square feet of retail space or more. Rather than serving as an anchor, these stores are typically not immediately connected to other smaller retailers like a neighborhood or community center. Examples of large retail tenants include: Walmart, Target, Costco, BJ’s, Lowe’s Home Depot, Best Buy, Dick’s Sporting Goods, Staples, Office Max, Office Depot, IKEA, and more.
Major Retail Appraisal Assignments
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