On-premise business signage is accessory to the property on which it is located, and the partial real estate interest it represents can be valued using traditional valuation methods and techniques. Signage valuation methods and techniques to federal directives, adopted in most states verbatim, and can withstand judicial inquiry or scrutiny.

Valuation

Evidence of the signs’ value that the Court would find compelling was essential to the winning or settling of Best Buy’s case. In signage valuation processes, value is not based on the value of the sum of a sign’s components, but on the value a sign provides to the business. Signage valuation expert, Dr. R. James Claus, completed the analysis and testified as to his findings and conclusions. The three methods employed by Dr. Claus to estimate the value of the signs to Best Buy were:
1. The cost of replacement (of lost exposures) approach

2. The income approach

3. The market comparison approach

Back to the Legal Case Study: Best Buy Store

Back to Legal Case Studies index.