Insider owns some wood billboards but advises against wood billboards for four reasons.

 Wood won’t last as long.  

Paul Wright’s Billboard Appraisal estimates the life expectancy of wood billboards at 30-40 years and steel billboards at 70-80 years.  This is extremely important in today’s regulatory world.  Municipalities pass strict ordinances which make most billboards non-conforming and then limit the ability to repair billboards.  When the fall into disrepair you’re supposed to take them down.  You want your signs to last as long as possible if they are non-conforming.  Look at this language from Jefferson County, Missouri:

Maintenance And Repair. Subject to the other provisions of this Section, non-conforming signs may be maintained and repaired so long as the cost of the work within any twelve (12) month period does not exceed fifty percent (50%) of the replacement value of the sign. No such work shall be done until the person proposing to do the work first submits the information required and the Director determines that the cost of the work will not exceed fifty percent (50%) of the value of the sign. Estimates for the cost of work must be based on detailed, professionally prepared bids and must be obtained from at least two (2) general contractors and submitted to the Director for review.

 Wood doesn’t look as nice.

The Scenic America folks are looking for a reason to abuse you.  Don’t make it worse by having poor looking signs.

Wood needs more maintenance.

Wood breaks.  Wood warps.  Wood structures lean over time.  Wood structures are more likely to be damaged by storms.

Wood signs aren’t as valuable in a sale.  

Here’s a quote from yesterday’s Billboard Insider interview  with billboard investment banker Max Drachman: “We are still selling assets between 8 and 14 times billboard cashflow.  The 8X deals tend to be rural with a lot of wood signs and short leases”

Insider’s take:  Use steel whenever possible.  The exception would be rural markets with low rates and markets where you aren’t worried about changing sign regs which make your signs non-conforming.

Paid Ad