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TOPIC: Affect of Digital Equipment on Real Estate Values

Re: Affect of Digital Equipment on Real Estate Values 29 Sep 2011 10:34 #37128

  • lionheart
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I never implied that a seller should try to hide the fact that what he is selling will soon need a new engine, or a new projector. Besides, when you buy a used car, you are aware that there may be some issues coming around the corner sooner than if you bought a new car. That is why the price is significantly lower for the used model.

And, yes, I would expect a buyer to consider the coming costs associated with buying a model that will soon need upgrading to remain useable. But, like I said, if the place already had digital, a seller would be charging much more. And since the added cost would be associated with equipment, a buyer should expect to pay for that separately. This means he will still need to pay for it in a much shorter term than the real estate, whether it be cash up front or a 7 year note of some sort. You will not really save much by buying a theater that already has digital, IMHO. It will just be more convenient.

Perhaps, it is possible that a theater that never had digital might have more potential than one that already has it and is still for sale. At least, you could possibly increase business by having better access to movies and 3D movies which the theater couldn't show before.
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Re: Affect of Digital Equipment on Real Estate Values 29 Sep 2011 13:14 #37129

  • rufusjack
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lionheart wrote:
Perhaps, it is possible that a theater that never had digital might have more potential than one that already has it and is still for sale. At least, you could possibly increase business by having better access to movies and 3D movies which the theater couldn't show before.

As of right now there is no evidence of any significant increase in revenue due to being all digital. The studios are booking like they have always done before. For every story of Mike saying Help was given to all theaters with digital right away, I know of others who had to wait 5-6 weeks. 3d adds a bump in the short term but it is not something that lasts. So a buyer should not be able to count on any increase in revenues based on what we know right now.

What has your building appraised for just as a commercial building regardless of use?
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Re: Affect of Digital Equipment on Real Estate Values 29 Sep 2011 13:18 #37130

  • rufusjack
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What Phil posted on another thread I believe to be the responsible approach unfortunately torward buying a "theater" www.bigscreenbiz.com/Forums/The-Lobby/34...worth-it/Page-2.html


I was talking to a friend who is a realtor, he stays clear away from theatre sales. If your in the business already you have a shot of surviving with the conversion to digitial.
But if your new and just coming in with the purchase of a 35mm twin,single etc.. lets say your doomed. Unless you just won the lotto and doing this as a hobby!
Last Edit: 29 Sep 2011 13:20 by rufusjack.
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Re: Affect of Digital Equipment on Real Estate Values 03 Oct 2011 22:12 #37155

  • Mike
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Speaking of doomed.... I'd say the movie business is doing much better than the realtor business. At least we're not based on a bubble.
Michael Hurley
Impresario
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