I was wondering if other lessors had received a proposed lease revision from Clear Channel Outdoor asking for a rent reduction due to “economic conditions.” I get a monthly rent of $245 for a location with about 17,500 views per day. I have thought that this might be over market, however the display sign is mounted on a flat roof and over the years, I have had many leaking problems. I finally put in a foam roof at a substantial cost, so I am not about to sign off on this 3-year haircut deal.
In looking further into the situation, I see that the parent company, Clear Channel Communications underwent an ill-advised leveraged buyout and one analyst predicted there might be a bankruptcy at the parent. I have never had a tenant go BK, so I was wondering what would happen in the event that there was default at CCO. As I understand it, the sign is the personal property of Clear Channel, so that would seem to make it a bit complicated as to how I would obtain title to the billboard in the event of a default. Do I evict them? It would probably cost $10k to remove the sign and patch the roof.