Shareholder Gary Kaleita and Associate Ty Pryor discuss how billboard landlords can maximize their revenue, as well as common issues that arise in the outdoor advertising industry.
Billboards are ubiquitous in the landscape along major Florida thoroughfares, at times seemingly blending into their surroundings. They dot (some would say mar) the landscape on farms and ranches along interstates and on commercial properties in urban areas. Many real estate attorneys have not given much thought to how the outdoor advertising industry (ODA) operates, and, more importantly, have not taken part in an ODA arrangement. This is unusual considering the $8.2 billion ODA industry has grown rapidly in revenue since 2009 (2020 saw a 15% dip in industry growth due to the COVID pandemic) and is expected to continue to climb as the economy awakens from its coronavirus-induced slumber. In this article, we will discuss a few ways landowners (i.e., potential billboard lessors) can maximize the revenue generated from their billboard leases, while addressing some of the more common issues that can arise in an ODA agreement.
First, it is important to note that ODA on state and federal roads in Florida is regulated by the Florida Department of Transportation. ODA is also subject to regulation by local ordinance. This generally isn’t an issue for potential lessors, because entities that are engaged in building and maintaining ODA identify parcels and their owners who are eligible under state and local rules for ODA structures. Once potential ODA lessees have identified where they would like their ODA to be constructed, they reach out to the applicable landowner. Owners, however, should always have their attorney consider applicable local ordinances and state regulations before entering an agreement with an advertiser. [Read more]
This blog was originally posted on Lowndes Leasing Lawyers.
Lowndes has sophisticated leasing attorneys who are familiar with ODA issues. Please reach out to us if you have any questions, concerns, or plans to get into the ODA market, and we will be happy to assist you.
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