| |
|
| |
|
| 1. |
| |
In a condemnation action, how much should a sign owner be paid if the billboard cannot be relocated on the parent tract but can be relocated across town at a better site? The cost to move, or market value? |
|
Cost to move. Most sign owners as well as condemning authorities prefer to pay the much lower cost of relocation rather than the fair market value of a sign. If a billboard can be relocated to
a site that is equivalent in terms of traffic count, demographics and other features, both the sign owner and the condemning agency should be happy with payment of the cost to move.
|
|
|
| 2. |
| |
Do you appraise billboards based on Income and Sales Comparison approaches or based on the Replacement Cost New Less Depreciation
(RCNLD)? |
|
We appraise billboards based on their market value. This includes an analysis of the structure and
its Replacement Cost New Less Depreciation. However, this is not the only approach used by buyers and sellers to estimate market value. Market value is defined by The Appraisal of Real Estate, 10th ed., as "The most probable price, as of a specified date, in cash, or in terms equivalent to cash, or in other precisely revealed terms for which the specified property rights should sell after reasonable exposure in a competitive market under all conditions requisite to a fair sale, with the buyer and seller each acting prudently, knowledgeably, and for self-interest, and assuming that neither is under undue duress." Billboards and the property rights associated with them are typically sold in competitive markets for cash or cash equivalent prices, with both buyers and sellers acting in their self-interest. These sales can be used to adequately estimate the market value of a billboard as well. Because billboards produce income an income analysis is also appropriate.
|
|
|
| 3. |
| |
Have you testified in court? |
|
Yes. We have testified at deposition and in court. |
|
|
| 4. |
| |
What kinds of outdoor advertising do you appraise? |
|
Our firm has appraised many standardized billboards including 8-Sheets, 30-Sheets and Bulletins. In addition to these appraisals we have also analyzed individual site leases, multiple site licenses/easements, hypothetical sites and relocation feasibility. |
|
|
| 5. |
| |
Does a billboard appraisal require some business valuation experience? |
|
No. Billboard appraisal does not require business valuation experience. However, billboard appraisal does require a thorough understanding of how outdoor advertising operations differ from conventional real estate operations. Billboard appraisal also requires an understanding of how billboard assets are managed and sold since most billboards are sold in small or large groups. Knowledge of business valuation issues may be important to the extent that a billboard is considered to have a component of business enterprise value. |
|
|
| 6. |
| |
What other services do you provide besides appraisals? |
|
We do appraisal reviews for clients who are too busy or not trained in billboard appraisal methods. We also provide billboard related information through our online newsletter and subscriber area, which has facts and figures as well as resources for additional information. We will also provide general consulting services, sit on arbitration panels, offer site lease or easement analysis and conduct market or relocation feasibility studies. |
|
|
| 7. |
| |
Have you published anything on the subject? |
|
We recently published Billboard Appraisal: The Valuation of Off-Premise Advertising Signs in association with the American Society of Appraisers. The 253 page paperback covers topics such as billboard appraisal, site lease analysis and other value related issues. The book includes illustrations, photographs, examples and market information. |
|
|
| 8. |
| |
Who are your primary clients? |
|
We have worked for both government agencies and plant operators over the last 15 years. Our government clients have included the Arizona Department of Transportation, the City of Phoenix, the City of Glendale and Pima County. Our plant operator clients have included major national sign companies and individual sign owners. |
