Cambridge, MA Liquor License Values: Current Market Analysis (2024)
Liquor licenses in Cambridge, Massachusetts represent some of the most valuable alcohol permits in the United States. According to a 2022 Cambridge Chronicle article by Mark Jaquith, these licenses trade in the range of $175,000 to $200,000.
Understanding Cambridge's License System
Cambridge operates under Massachusetts' quota system, which limits the number of liquor licenses based on population. This artificial scarcity creates a secondary market where licenses become valuable assets.
License Types and Values
| License Type | Typical Value Range | Notes |
|---|
| Full On-Premises (All Alcohol) | $175,000 - $200,000 | Restaurants, bars, hotels |
| Beer & Wine Only | $50,000 - $80,000 | Limited service establishments |
| Package Store (Off-Premises) | $150,000 - $180,000 | Liquor stores, wine shops |
| Seasonal/Club | $30,000 - $60,000 | Limited duration or membership |
Factors Influencing Value
- Neighborhood: Harvard Square, Central Square, Kendall Square command premiums
- License conditions: Restrictions on hours, seating, entertainment reduce value
- Transferability: Some licenses have geographic restrictions within Cambridge
- Market timing: Restaurant boom/bust cycles affect demand
Recent Market Trends
- Post-COVID recovery: Values dipped 2020-2021 but rebounded strongly 2022-2023
- New development: Kendall Square biotech boom increased restaurant demand
- Regulatory changes: Cambridge occasionally petitions state for additional licenses
- Interest rates: Higher financing costs may pressure prices
Comparison to Greater Boston
- Boston (unrestricted): $350,000 - $450,000+
- Somerville: $120,000 - $160,000
- Brookline: $180,000 - $220,000
- Statewide average: $100,000 - $150,000 (varies widely by municipality)
Acquisition Process
- Identify available license (broker, attorney, public notice)
- Negotiate price with seller
- Apply for transfer with Cambridge License Commission
- Public hearing required (abutters notified)
- Commission approval → State ABCC approval → Transfer complete
- Timeline: Typically 2-4 months
Important Considerations
- Values fluctuate - The $175K-$200K range reflects 2022 data; current market may differ
- Legal counsel essential - License transfers involve complex municipal and state regulations
- Due diligence required - Verify license status, violations, restrictions
- Financing challenges - Many lenders won't finance license purchases alone
Disclaimer: License values are market-driven and change frequently. Consult a Massachusetts liquor license attorney or broker for current valuations and transaction guidance.
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