Billboard Insider recently watched a November 19, 2024 Lexington County Zoning Appeals board meeting in which Lamar unsuccessfully tried to prevent Grace Outdoor from putting up a billboard after the landlord terminated a Lamar billboard lease. It’s a complicated case which begins at 20:54 of the recording but what caught our attention was the speech the billboard’s landlord made at the 1:44:14 of the proceeding. Here are some excerpts:
“That original contract started out at $2,000 a year. And last year we were getting paid $2,000/year. Twenty five years later…We had several conversations trying to get the dollar amount to what was fair market value. They never could get their amount to where it was fair market value…One of the first things he said to me is you will never get a billboard on your property if we take this one down. We will put one across the street. What we don’t have here is misunderstanding. What we have here is corporate bullying…He told me he was willing to pay only $3,500 a year which was ridiculous. I’ve done my homework. I know a lot of people around here that own billboards. I’m kin to half the people in Lexington…I’ve done my research. There’s no reason that my billboard shouldn’t be worth as much as a billboard that’s a thousand yards down the street…I’m not a rich man. I’m a hard working guy. I work 60 hours a week…”
Billboard Insider’s take: Don’t let the best become the enemy of the good when it comes to a lease. We want great leases but a one-sided lease creates resentment If the board isn’t doing well then share the board results with the landlord and explain why you can’t increase the rent. If the board is doing well be prepared to renegotiate to a market rate. Also, you need to perform an internal sound check on what you say during negotiations. You want to be forceful and direct but not arrogant.
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I think there should be limits on the time a billboard owner can rent a spot. This, to give competing billboard companies a chance to pitch for higher rents. This only sticks closer to a free enterprise system. Some billboard comapanies act like they own cities. They don’t.
We built the sign and it is up and running. Lamar has now appealed to circuit court. They just can’t let it go.
Glad to hear that Hal won this case. He is a stand up guy.
Billboard Insider’s take is good advice. Just because you “can” do something doesn’t mean you should.