If you have a billboard on your property, you might be wondering if you're getting a fair deal. The truth is, many landowners are significantly underpaid for their billboard locations. Here are five signs that your lease may be undervalued.
1. Your Lease Hasn't Been Renegotiated in Over 5 Years
The outdoor advertising industry has changed dramatically over the past decade. Digital billboards have transformed the market, traffic patterns have shifted, and advertising rates have generally increased. If your lease terms were set more than five years ago and haven't been updated, there's a good chance you're leaving money on the table.
Even if your lease includes annual increases, these are often minimal (1-3%) and may not keep pace with actual market value increases.
2. Traffic Near Your Billboard Has Increased
Has a new development gone up near your property? Has a road been widened or a new interchange built? Traffic count is the single biggest factor in billboard valuation. If traffic has increased since your lease was signed, your billboard is worth more than you're being paid.
Billboard companies track this information carefully and adjust what they charge advertisers accordingly—but they don't automatically pass those increases on to landowners.
3. The Billboard Has Been Converted to Digital
Digital billboards can display multiple advertisements and generate 3-5 times the revenue of traditional static billboards. If your billboard has been converted to digital but your lease payments haven't increased substantially, you're almost certainly being underpaid.
Some landowners have seen their payments double or even triple after renegotiating following a digital conversion.
4. You Signed Without Negotiating
Billboard companies are sophisticated negotiators who make initial offers expecting pushback. If you accepted their first offer—or only negotiated minimally—you likely have room for improvement.
This is especially true if you signed your lease many years ago when you may have had less information about market rates and negotiation strategies.
5. Similar Properties in Your Area Receive Higher Payments
Do you know what other landowners with billboards are receiving? If not, you have no way to benchmark your lease. Billboard companies prefer to keep this information private, but comparable lease data is crucial for understanding your position.
If you do have information suggesting neighbors or similar properties receive higher payments, that's a clear sign your lease needs attention.
What Can You Do?
The good news is that even if your lease is currently undervalued, there are often opportunities to improve your situation:
- Wait for renewal: Lease renewals are natural negotiation points
- Review your contract: Some leases allow for renegotiation under certain circumstances
- Seek professional evaluation: A billboard lease consultant can assess your situation and advise on your options
Don't assume you're stuck with unfavorable terms. Many landowners have successfully improved their lease payments by taking proactive steps.