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High Rise Signs

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Long Walk

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Joined
Apr 29, 2014
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General Public
State
New Hampshire
Greeting to the Forum!

I am new here and did not see a place to post an intro. I am a trainee for the CG license and have finished all but one class. I have 12 reports finished.

I used the search function and could not find anything on this topic. I also searched the Lum Library and found nothing. I wanted to see what I could get on my own before I asked my supervising appraiser for help.

Is there a resource that someone could point me to that would help me to understand how to analyze the contributory value (if there is any) of a high rise sign? The pole is about 50' tall and is located at an interstate exit.

Thanks for your help and I look forward to learning from you all.
 

Long Walk

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General Public
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New Hampshire
Thanks, Gregb. This is a sign at a gas station. Would that be covered by the billboard analysis? It is isn't an income-producing sign.
 

Terrel L. Shields

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May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
Would that be covered by the billboard analysis? It is isn't an income-producing sign
Probably has little contributory value if on the station site, it is a trade fixture unique to the franchise, and the depreciated cost contribution works as well as any.
 
Joined
Jun 2, 2007
Professional Status
Certified General Appraiser
State
Florida
This is a great exercise and congrats for your conscientousness. Don't expect textbook precision, but you might see a pattern in your sales data when an attribute like this is highly significant... this is just general advice.

In your specific gas station pole sign case, think when making an adjustment whether market participants would rather have the subject or the sale exposure and signage (they are frequently so autocorrelated that they can be a combined observation). Then, is the difference really discernable? If so, "nudge" the sale price in the appropriate direction... anywhere from a token 2.5% to a potentially discrediting 25% or more.

As you complete your adjustments you will find patterns such as something you thought was 10% looks a little high and you can back off.

What you are seeking is an array of sales bracketing the subject before and after adjustment within a reasonably tightened range. This is the art of the non-empirical adjustment process.
 

Long Walk

Freshman Member
Joined
Apr 29, 2014
Professional Status
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New Hampshire
Thanks, Michael. Your advice with Terrel's looks like what I needed. I will see what the comparable sales look like and then talk with my supervisor.
 

Michael S

Senior Member
Joined
Mar 18, 2009
Professional Status
Certified General Appraiser
State
New Mexico
I would imagine it has some contributory value as the sign itself cost a fair amount to install and current regulations might restrict a similar sign on a competing site. I've seen plenty of examples of buildings being torn down but the sign left intact as once they demolish it they can't built one as tall or larger under new zoning codes or other regulations. If it's along a freeway your state's Department of Transportation may have some say in the matter. We've all seen exits along the freeway where every business has a 50' tall sign and it gets lost in the mix while others have just a single tall sign or none at all. I don't think you'll find it's a huge factor but certainly one that at least requires some discussion.
 

Gobears81

Senior Member
Joined
Nov 7, 2013
Professional Status
Certified General Appraiser
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Illinois
For a c-store at an interstate exit, it is pretty commonplace that a high-rise sign is present, at least in tertiary IL markets and based on the caveat of zoning/ restrictions, similar to what Michael S mentioned. I agree with consideration of the depreciated cost of the sign for determining its contributory value, and not having one could potentially constitute functional obsolescence due to deficiency, in which case, the textbook formulas that were taught in the AI general cost approach class could be applicable for an adjustment for locations that do not have it (assuming it is legally permitted).
Another bent is zoning or some other restriction not allowing a high-rise sign, as in this case, a simple depreciated cost or functional obsolescence consideration related to cost to cure would not be appropriate.
 
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