Updated about 1 year ago on . Most recent reply
Billboard lease proposal...how much for a lease? $1000? $2000?
We own some commercial property on a very busy highway. 250,000 cars pass by everyday. We recevied a proposal from a billboard company to build a full sized billboard. the research has been conducted and a written lease has been written and presented to us for 1k/mo, 20 years + 20 yr option, with 10% rate increases every 5 yrs. We are very interested, but what is a fair rate? I think that billboards here run $5000-10000 (maybe more?) a month here because it's so busy, but I'm not really sure.
From what I'm told and from what I've researched, you can expect to recevie about 15% to 20% of the gross monthly revenue that the billboard company gets. I am also going to required annual increases in rent based on the CPI index, among a few other things.
Does anyone have experience with this? I don't want to have any regrets.
Thanks in advance for your responses!
Most Popular Reply
Oscar, with what you know now, would you consider buying land for billboards as primary purpose? Thanks for the contract tips.