The Ground Lease Explained

Our product requires only a tiny footprint on your property sometimes as small as a 24 inch circle. Rather that try to carve out that tiny piece of land and buy it (which most zoning codes do not allow), we enter into a ground lease with the property owner and rent just what we need.

Landowner Provides
  • Roughly two feet diameter area of land to set the sign pole
  • Access across the property to run separate power service to the sign
  • Access across the property to change the ad copy and maintain the sign structure
Railroad Outdoor Provides
  • The permits necessary to erect a billboard on your property (these permits are not easy to get and require a great deal of time, money and expertise to obtain)
  • The billboard sign
  • Professional management of the sign to maximize rate and occupancy for top revenue
  • Separate utility hook up at no cost to landowner and payment of any taxes assessed on the billboard
  • There is no cost to the landowner at any point during the permiting, development and operation of the sign
  • We indemnify and hold the landowner harmless against all claims or damages arising from building, operating or maintaing the billboard

Frequently Asked Questions

  • WHAT HAPPENS TO THE BILLBOARD WHEN I SELL MY PROPERTY?

    The ground lease runs with the land and the new owner takes over your position in the ground lease. Some property owners create a permanent easement so that they may sell off the sign revenue while they still own the property or keep the sign revenue even after they no longer own the property.

  • WHERE WILL THE SIGN BE LOCATED?

    We work collaboratively with our landlords to agree on a location that is acceptable to everyone. Our signs are usually placed in unbuildable areas of the lot near property lines or in rough topography. We want the sign to remain for many years to come and we do this by locating it where it is least likely to get in the way of the primary use of the property.

  • WILL THE SIGN BLOCK MY BUILDING?

    On the contrary, our signs help visiblitiy of your property because we regularly obtain permission to keep tree branches and undergrowth trimmed back so that the sign is not blocked. In most cases, we are even allowed to remove trees and brush in the road right of way. The sign face is far above the property and only a small pole about the size of a power pole is in front of the property.

  • WHY WORK WITH A SMALL COMPANY?

    Three national players and a handful of mega-regional players operate almost all of the billboards in the United States. However, they almost exclusively operate signs purchased and consolidated from smaller firms. The time, skill and uncertainy involved in the permitting process keeps most large companies away from developing new billboard sites. Most of the permits for new billboards are pulled by smaller companies like Railroad Outdoor.

  • HOW MUCH CAN I MAKE?

    We have found that the fairest and most practical rent is a percentage of the advertising revenue that the sign generates. Each quarter, we send a report of all advertisers on the sign and the revenue received from each. We also send a check for a percentage of the total revenue. Out of the remaining revenue, we pay the power bill, sign upkeep, insurance, and the salesforce necessary to keep the sign rented. With a percentage lease, your check automatically increases over time as increased demand and in?ation drive advertising rates up.

  • WHAT IF THERE IS NO AD ON MY SIGN?

    We average sign occupancies close to 90%. We are a small locally owned business and our advertisers literally put food on our table. We would not be in business very long if we spent thousands of dollars to build sign structures only to let them sit vacant.

  • WHY ARE YOU CALLED "RAILROAD OUTDOOR?"

    In the beginning, we built many of our signs along railroad tracks and that is where the "Railroad" part of our name comes from. A common name for what we do is outdoor advertising and that is where the "Outdoor" comes from.