Today, out of home leasing and development expert Andy Goodman of Age Advertising talks about how corporate landlords differ from individual landlords and what sort of lease terms you should seek.
When it comes to securing billboard leases, not all landlords are created equal. One of the most significant distinctions in our business is the difference between working with individual property owners versus corporate landlords.
Individual owners tend to move much faster. Decisions are often made by a husband-and-wife team, a family business, or a single owner, which makes communication more direct and negotiations more flexible. It’s also easier to build long-term relationships at this level. Individuals are generally more willing to adjust lease terms, consider creative solutions, and respond quickly when opportunities arise.
Corporate landlords, by contrast, operate through layers of management, legal review, and formal approval processes. While they may offer scale and consistency, negotiations are typically slower and far less flexible.
Because of this, when I’m looking to place new leases, I always start with individual property owners. Once those opportunities are exhausted, I then evaluate what’s available at the corporate level.
Municipalities represent a different category altogether. What drives my decision to work with a city is exclusivity. Increasingly, cities are choosing not to open their sign ordinances to either private citizens or corporations. Instead, they restrict new billboard development to city-owned property only. While this limits competition, it also means municipalities can become gatekeepers for some of the most desirable locations.
Lease Length Matters
Static Billboard Leases:
A static billboard lease needs to run at least 10 years. The traditional structure is a 10-year initial term with two five-year renewal options. Ideally, those options should be unilateral—allowing the operator to extend the lease as long as they remain in good standing.
The goal is to protect the investment. No operator wants to build a billboard only to have the property owner decide a decade later to put the site out to bid and allow a competitor to step in.
Digital Billboard Leases:
Digital billboards require even longer commitments. My preference is a 20-year initial term with two five-year options. The reason is simple: cost.
In California, constructing a digital billboard can range from $500,000 to $1,000,000—substantially more than a static sign. On top of that, digital faces typically need to be replaced every eight to ten years. Given that level of capital investment and ongoing expense, a longer lease term is essential to make the economics work.
You can contact Andy at 310-721-8422, andygoodman.age@gmail.com
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