Signs, Signs, everywhere signs!!

In today's ever cluttered advertising marketplace, advertisers and marketing agencies are spending millions of dollars a year producing and placing signs wherever someone will let them.  The real estate industry is no different.  Signage definitely has a place in commercial real estate as it still remains the most cost effective and easiest way to market your property, vacant space or service to the masses.  

However, property owners and managers need to consider what potential revenue can be generated from additional signage.  One example, is pylon, directional or monument signage.  Most leases have no or limited signage language included in the documents.  Therefore, if tenants, vendors or third-party agencies want to market themselves on your property, you can assess a fee.  Your fee should be considered based on the following details.  

1. Visibility of the sign

2. Liability risk associated with placing the sign

3. Potential incremental sales associated with placing the sign

4. Loss of business to existing tenants on your property.

5. Design of sign intended to be placed.

Based on these factors, you can assess a fee of your choosing.  Demand will also be a determining factor on your fees.  If sign is easily seen by many people on a busy thoroughfare, your fee can be higher.  Leasing signage space is a major revenue stream to real estate owners.  In some cases, signage fees can be equal or in excess of those generated by traditional tenants.  Consult your tenants to see if they need additional signage on the property.  Consult a local advertising company to see if they would / can consider your property for advertising.  

Prior to investing any money into the endeavor, you will need to review your existing leases to determine if this opportunity is restricted in any way.  Traditional advertising may be restricted but advertising your tenants or vendors won't.   Depending on the location, tenant advertising can generate between $200 - $500/month.  It all depends on the demand.

Good luck and get to know a good sign company!!!!