How Much Is Your Billboard Lease Worth?
If you’re a landowner with a billboard lease, you probably have a steady, fixed income. But if you need a significant amount of cash for a new investment or to pay off debts, you may not have the time to wait for your lease payments to come through. Fortunately, it’s possible to cash in on the entire value of your ground lease by selling it in return for an immediate lump sum payment.
Billboard leases are negotiated on a case-by-case basis, so assessing the value of yours might be a complex process. By understanding how rates are determined, you can ensure that your billboard ground lease delivers maximum returns.
The Issues That Determine Lease Rates
Land that benefits from a lot of traffic — whether by car or by foot — should attract relatively high lease rates. Other issues that help to determine how much a billboard lease is worth include visibility from the road, local advertising values, the size of the sign that is being planned and the market conditions at the time.
It’s All About Marketing Impressions
Most billboard advertisers calculate the value of a billboard location according to the number of marketing impressions it is likely to achieve. This means that, in the majority of cases, the potential value of a ground lease is directly linked to the number of people who will set eyes on the billboard.
Some marketing impressions are worth more than others, however. For example, if the land is located in an area that is frequented by people of an in-demand demographic, billboard advertisers may be willing to pay a hefty premium for it. Companies wishing to advertise luxury goods want a presence in areas where average incomes are high — something that is reflected in the lease rates they achieve.
Sell Your Billboard Lease and Cash In
Billboard lease rates in the USA usually range from $500 to $75,000 a year. If you currently have a billboard ground lease, its value has the potential to be huge. Whether you want to buy more land or pay off debts, you can unlock this value by selling your lease to Outdoor Equities.
Selling your billboard lease means you don’t have to wait years for the cash you need. Instead, you can secure a cash lump sum in a matter of days — giving you the funds you need for your next project.