Landowner Easement help needed

outdoor billboard investment forum
1

Hi,
I am new to all this billboard business stuff and have a small piece of land in front
of a 4 lane highway in Southern Illinois, just east of Cape Girardeau, Missouri.
I have a metal shop building on the back end of the property with a utility alleyway access
to the shop but the front end of the property is just … unused grass.
I have been asked by a rep for a billboard company if I would sell an easement right to put
up a monopole four sign billboard for a flat fixed price on an easement contract.
I would rather prefer a monthly or biannual rent deal.
I know that we have a very high (and growing) traffic count on this state highway crossing
over to Missouri and the sign company has dozens of his signs in our area, within eyesight,
and only 1 or 2 that isn’t currently advertising anything.

I have some landowner questions about this,… so I don’t get a sour deal.
What is a good price for this, and what is a good percentage deal per month or biannual?
I have this impression that this guy thinks I’m easily suckered,… but not sure,. he
may be on the level and fair.
Is it possible to negotiate having one of the four billboards advertise what I would like,
as part of the contract? ( such as advertising my website or a tea party group or something like that?)
Who has to mow the grass around this sign? (currently I mow it… it’s my grass)
What are the other considerations I need to know?

Any help and legal advice is very much appreciated, Thank you in advance. :slight_smile:
Thomas

2

The typical ground rent is 20% of the gross revenue. You’ll have to figure out what the revenue would be, or we have a service on the site that does it for you for $199. An easement is nothing more than a math calculation of this income at various rates of return. There are many potential ground lease pitfalls, those are again addressed in our service for a total of $199. As far as advertising on the sign, that’s completely negotiable between you and the sign company.

3

Thanks for replying Frank,
How would I know and track what his gross revenue would be?
Has anyone ever made a deal to use one of several billboards?
What kind of lawyer “specialty” would this be called if I seek a lawyer
about this kind of contract for billboard land leasing?

Thomas

4

You would need a “commercial real estate” lawyer.

The only way you can track revenues is through a certified billings statement for the period in question.

Yes, people trade out one side of a sign for ground rent all the time.