The cinema property type has been transformed over time. In the pre-television era, the 1930s saw the mass development of grand ‘picturehouses’ across the country. The insatiable growth of US-style multiplex cinema outlets, first introduced in 1985, has led to the closure of many so-called ‘traditional’ cinemas, which have either been converted to a variety of other leisure uses or lost to residential or commercial redevelopment. However, a significant stock of traditional cinemas still remains. More recently, smaller ‘boutique’ cinemas have begun to emerge to complement the stock of traditional and multiplex operations.
Therefore, it is important to differentiate between traditional, multiplex and boutique-style premises when undertaking a cinema valuation. Capital valuations relating to each type of premises are discussed, along with rental valuations for both multiplex and traditional cinemas.