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LEASE AGREEMENT FOR BILLBOARDLease Number: I Date:, This Agreement dated this day of, between (Lessor) with an office at 194 Nassau Street, Princeton, New Jersey 08542, and (Lessee).1. Lessor hereby.
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Nassau FAQ
Leases for billboard use often run between five and twenty years, or longer. Because of the length of time involved, it is important to ensure that you are covered for inflation.
The billboard does not belong to the property owner The property owner owns just that and only that—the property, whether it's the roof, an exterior wall, or a plot of land. Sign companies own the actual billboard and, as owners, they then lease that space to advertisers.
Land Is Leased From the Owner While some leases can last for just 10 years, others can last for up to 40. In most cases, the landowner will receive a fixed monthly payment or an annual lump sum. Some ground leases also pay the landowner a share of the advertising revenues generated.
Discount rates for billboard companies are often around 13% to 15%, and cap rates are usually in the area of 8% to 12%. There is nothing unusual in applying the income appraisal methods to billboard companies.
On the average, a billboard generating an annual income of $24,000 will yield about a monthly rent income of $1,500 to $2000. At most, billboard landlords should understand the market value of their billboards in order to know how much rate they can reasonably demand from potential billboard tenants.
Leases for billboard use often run between five and twenty years, or longer. Because of the length of time involved, it is important to ensure that you are covered for inflation.
Land Is Leased From the Owner While some leases can last for just 10 years, others can last for up to 40. In most cases, the landowner will receive a fixed monthly payment or an annual lump sum. Some ground leases also pay the landowner a share of the advertising revenues generated.
Cancelable Related content
Billboard Lease
The Property is leased for the sole purpose of construction, operations and maintenance of...
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