Billboards
I'm looking at a deal for a building located right next to a major urban expressway. If got a user for the building but by the time I get done with tenant improvements the deal is just too thin. But then I get to thinking about the location and I think "why not rent the side (or more likely the roof)" for a sign? Clearly visible from the expressway, lots and lots of traffic.
Any idea what such a bilboard might rent for? How long it might take to find a tenant?
Hi Mark,
I'd suggest calling up Lamar, Clear Channel, or Viacom (whoevers' boards you see the most of on your drives). (Lamar is based here in Baton Rouge but owns over 140,000 signs nationwide) Those are the big 3. Doubt if you'd really want the headache of managing it yourself and would probably net more just leasing it to one of them. It'd be steady income without worrying about getting the advertisings. There are also more than likely some city restrictions and/or permitting involved as well. Are there other billboards in the general vicinity? If so, you're probably ok. If not, might be some restriction that would keep you from getting approvals. Around here, for example, they can't be within 250 feet of any residential areas. Even a local school got in trouble recently for replacing their sign with one that had an LED display, without a permit. Some areas can be real particular ...
Tonya
As for the amount these signs usually go for ... too much depends on location. In some areas they rent to the end user for $600/month; in other areas $10,000/month. Chicago might be at that upper end tho ... Lamar's site has info on what they charge people.