Today out of home leasing and development expert Andy Goodman of Age Advertising talks about the difference between municipal and corporate landlords.
What’s it like working with a municipal landlord?
One of the biggest advantages of city-owned property is long-term stability. Municipalities typically retain ownership of their assets, rather than selling or redeveloping them. As a result, leases, development agreements, and operating agreements tend to be secure and predictable, offering advertisers confidence in the longevity of a location.
Cities also control a significant amount of prime real estate, particularly along freeways and major traffic corridors. These locations often provide exceptional visibility. Municipal landlords can regulate surrounding signage, remove visual obstructions such as trees, and generally help enhance sightlines, all of which contribute to stronger billboard performance.
Another benefit is the reduced risk of legal or title issues. Because cities have clear ownership and established records, there are typically fewer disputes. Overall, municipal properties offer a high level of stability that can be very attractive for long-term advertising investments.
However, there are drawbacks. Municipalities tend to move slowly and operate conservatively. Lease negotiations are often complex, highly regulated, and time-consuming. Cities are deeply involved in decisions related to billboard placement, height, and size, each of which may require multiple layers of review and approval before moving forward.
What are corporate landlords like?
Corporate and private landlords generally operate with more speed and flexibility. They are accustomed to leasing portions of their properties and often have a strong understanding of market dynamics. In many cases, they are less focused on precise technical details—such as exact placement or height—so long as the billboard does not interfere with tenants and the operator handles power and maintenance. This can result in a smoother process with fewer obstacles.
Negotiations with corporate landlords also tend to be more straightforward. In states like California, agreements involving municipal landlords can evolve into three-party arrangements that include development agreements. These structures often reduce profitability, as revenue is split among multiple stakeholders. Cities typically seek a larger share because they are directly involved in the agreement, while corporate owners are often satisfied with a smaller portion, recognizing the municipality’s role.
Choosing the right partner
Both municipal and corporate landlords offer distinct advantages and challenges. Municipal properties provide long-term stability and premium visibility, while corporate landlords offer speed, flexibility, and simpler negotiations. Ultimately, the best option depends on the specific location, project timeline, and overall business objectives.
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