Negotiating a Billboard Lease with an Advertising company in AL

5 Replies

Hey Everyone,

I hope all is well.  I was wondering if any property owners had an experience negotiating a billboard lease with an advertising company.  I would love some suggestions.  I have a property in Tuscaloosa, AL under contract that currently has a short term billboard lease left on it that i would assume upon closing of the deal.  The lease amount is under market rate and I want to try to renegotiate a new lease with more favorable terms.  I would appreciate any advice or suggestions.


Do you have a copy of the existing lease? Is it a large tenant or regional? I have some contacts in AL if you can give me some details.

We have one - big picture it's a small monthly lease amount but with a year-end kicker based on their revenue.  I don't know what a standard lease looks like - is there data anywhere for how much? and where?

@Aamir V. Hey Aamir, thanks for the response and my apologies for the delayed response. I have been looking at a couple properties that have a billboard lease on them currently with an advertising company. I realize every lease is different and factors with regard to the location, traffic count etc all play a roll but I was really trying to hear about what sort of protections to the property owner was realistic to get from the billboard company. Is your sign an interstate sign? Does it have frontage on the interstate or are there other properties in between yours and the road? Does the billboard company have the right to terminate the lease if a structure is built that blocks the sign or decreases the visibility?
@Ronald Rohde Hey Ronald, Thanks for the response and my apologies for my delayed response. I think I am going to pass on the original deal I was looking at but was looking at some others. I am really trying to get an idea as to what sort or guarantee was typical In a lease and whether or not the advertising company always reserved the right to terminate lease if visabIlIty is lost or reduced due to new construction on surrounding properties

I just wrote an article about this. Feel free to PM me for a copy. Is current lease a ground lease? I would look for a monthly payment, NOT a lump sum and no easement, just a lease.I would also make sure, depending on location, that you have the right to restrict the content if you are leasing to a smaller company or an ad agency. Make sure all costs are passed through to the tenant, including all permits and approvals, maintenance obligations, tax increases, etc.