In the recently decided case of Target Corp. v. Green County Board of Revision, the Supreme Court of Ohio affirmed a BTA decision finding that the taxpayer’s appraiser properly valued a big box retail property by utilizing second-generation sales and lease rates. 

In this instance the appraiser utilized sales and rentals of two abandoned Ames stores and two abandoned Kmart stores to arrive at an opinion of value. The decision reads: 

“After a lengthy discussion of big-box marketability, the appraisal states that ‘the fee simple market value of these properties is substantially lower than replacement costs, not only due to physical depreciation but also obsolescence. This obsolescence occurs the day they are completed thus even brand new big box stores are worth less than their cost to rebuild’” 

This is a good case for big box taxpayers in Ohio. I think it fairly and realistically addresses the market value for big boxes after “the name” vacates the property.