A de facto cap on new liquor licenses in Pacific Beach has made the ones that exist extremely valuable. They’re selling for as $1 million and are having a dramatic effect on property values and tenant-landlord relationships. Voice of San Diego, Nov. 28, 2016. Image credit: Jamie Scott Lytle
In Pacific Beach, businesses are struggling to get new liquor licenses – and that has turned preexisting liquor licenses into pure gold.
If a business has a preexisting liquor license, the value of the property increases, creating contention between tenants that hold the licenses and landlords looking to cash in on the rising value. And the supply squeeze has led many Pacific Beach businesses to convert from family restaurants to bars as they try to satisfy the demand of San Diegans and tourists that come to the area to drink.
A preexisting liquor license in Pacific Beach can sell for between $100,000 to $300,000, said Sara Berns, the executive director of Discover PB, the local business improvement district.
