Billboard Insider is running an interview series with John Musick who has more than 50 years experience in the out of home business. John has talked about getting into out of home and building signs and installing a solar-powered billboard. Today he talks about billboard leases and easements.
How did you introduce yourself to landlords?
I just stopped and knocked on doors. I’d tell them I was looking for a billboard location, go over my percentage deal — I always sold on a percentage basis.
What kind of terms did you offer?
Twenty-five percent. You don’t hear that from the larger companies anymore. But landowners are happier, and in my case I gave all of my landowners total approval of all copy. I never lost a location. And 25% of gross means that in a good year, your landowners grow with you — and if there’s a recession or the board goes vacant, their rent goes down too. I did have a minimum, probably around $100 a month, to cover vacancies. I liked longer lease terms — ten years with options to renew.
Did you ever have a landowner object to ad copy?
I think I have reasonable morals to start with, so I never had that problem. I stayed away from casinos, liquor, and that type of advertising. I think that’s why I never had a problem with landowners
What do you think of easements?
Being such a small operator, I never got into easements — I didn’t have the front-end money. I’ve talked to people in Missouri who do it, and I think it’s a very good thing. But I’ve also seen second and third landowners try to find ways out of them legally. The original landowner took the money and the new owner looks at you and says, ‘You’re on my property and not paying me anything.’ It creates ill will. And you’ll see buildings go up right against the billboard. Those are not good scenarios. But if you’re selling a company, buyers love easements — no land rent.
To receive a free morning newsletter with each day’s Billboard insider articles email info@billboardinsider.com with the word “Subscribe” in the title. Our newsletter is free and we don’t sell our subscriber list.
Paid Advertisement
