Sub lease Ground space

Hi All from Australia,

I found a great location and currently talking with a government agency that lease the land. They are happy to accommodate a sub lease for billboard placement. Are there any pitfalls I should worry about with a sub-lease? Location is next to a major highway with 40,000 cars passing daily.

This is my first billboard and have received quotes from construction companies to build a 18 meters x 4 meters billboard atop of a 10 meter monopole. Have I bitten off more than I can chew? Should I start smaller with the potential of not attracting clients to advertise on such a large billboard?

My backout plan is to go as far as obtaining permits and flipping the package to a larger billboard company.

Any comments most welcome.


First of all, make sure that your lease allows you to cancel if you want to – there’s many variables on this deal. As long as you have the cancellation provision, then I’d go forward and get the permit.

Once you have the permit, offer the the sign location to all the billboard companies in the area and see what they’ll give you for it. This is like a free appraisal.

Once you have that affirmation of value, then you can think about the options.

Thanks Frank, advice is well received and will update the forums with an outcome.

Hi Frank,

One of the property owner’s caveat is “all the legal costs associated with the reviewing and finalizing the contract documentation must be met by the sub-lessor.” Is this normal practice?

They have also been approached by another advertising company and are willing to have ground leases to myself and another company, effectively 2 billboards erected at the one property.
The property faces the major highway at the length of 370 meters.

They have given a deadline of 06.06.2014 to submit proposals. Do proposals normally include engineering drawings?


I have never heard of the billboard company paying the Lessor’s legal costs – what if the bill is $20,000?

I don’t understand what you mean by “ground leases to myself and another company”.

Sorry if this was confusing, meant to say they are considering myself and another company to erect billboards each at their property.
Thanks for the first advice, will query that.