Today site development expert Andy Goodman talks about how to approach a lease termination and how to keep options open when you’re worried a landlord won’t extend your out of home lease.

Terminations

If there’s negotiations going on at the end of the lease and we’re trying to work through the details I don’t see any reason why you wouldn’t try to protect your rights as the existing Lessee.  But to place a clause in the Lease that no one else can build a billboard on a site for 5 years after a Lease expires, that’s something the property owner should resist. Although, I do place that language in a Lease if a property owner wants a sale or development clause.  In exchange for agreeing to leave the property if they sell or develop it, I will insist on a no billboard clause or a first right of refusal clause to rebuild on the property for the length of the term of my original Lease if I have to terminate.

Keeping your options open if you are worried that a landlord won’t extend your lease.

If the Municipality allows for billboards and I have a lease coming to an end, I look at the property owners next door and say, “hey guys, let’s sign a lease that’s contingent on my taking my billboard down” so that I protect an area for myself.  This is an option If I have a contentious property owner or if they are negotiating with another billboard company. Most likely the other billboard company is looking for options in the area too. So, if the termination does happen I have an alternative location next door and space them out. If that has to happen, so be it.

You can reach Andy at andygoodman.age@gmail.com or 310-721-8422.

Paid Advertisement