Categorized | Commercial

Commercial Restaurant Properties Increase in Value

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While overall business may not be good for many restaurants due to the economy, the value of their real estate is realizing some impressive gains. Many investors have their eyes on the potential sale of properties own by the restaurants, which, in many cases, are more valuable than the chain itself.

In fact, various restaurant companies, such as Ruby Tuesday, own commercial properties worth twice as much as the restaurant business. As such, many investors are pushing these businesses to make up for poor overall profits by selling some of their properties for immense gains.

Although most restaurant chains have faced hard times in recent years due to the recession, some executives are very adamant against the idea of selling their commercial property for the benefit of shareholders. The spokeswoman for Cracker Barrel, another company with high value commercial property worth more than the business itself, stated that there is little interest at this time in selling the restaurant business’s commercial property.

With commercial property values slowly improving, the value of restaurant properties has seen somewhat of a surge as of late. With overall profits for these companies declining by as much as forty percent in some cases, it would seem that the most obvious way to improve the overall valuation of the company on the market would be to sell some real estate property. It is not uncommon for a restaurant business to improve their stance in the market by selling their property, and then leasing it back so as to maintain the current locations of each restaurant. As to whether or not that will happen remains to be seen.

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About Drew Wilson

Drew focuses on the Commercial and Mortgage/Finance categories.

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