Have a read on this very interesting article on the monthly fees collected by landlords renting space for digital signs on the sides of their buildings. Monthly checks are rolling into building landlords bank accounts from $40,000 to $250,000 (for times square).
Webpavement believes the times square success can be applied to other top DMA's in the United States and abroad.
Why? With (1) high office vacancies (2) high availability for sub-leasing opportunities and (3) the growth in newly constructed office buildings -- it's clear new revenue channels must be assessed for commercial real-estate developers and landlords. Some real estate analysts have indicated that commercial real-estate is in a bubble similar to Internet stocks in the mid to late 1990's.
An excerpt from the article that impressed us the most:
One Times Square in Manhattan has only one tenant, a Warner Bros. retail store filling the first three floors. The remaining 19 floors are vacant. It's not that Sherwood Outdoor--a partner in the famous building that drops the ball every New Year's Eve--can't fill the space. "Who needs pain-in-the-butt tenants," says Brian Turner, president of Sherwood, "when you've got the largest sign tower in the world?"
The landlords make more money by leasing the space on the outside of 1 Times Square for advertising, he says, than they would from the office space inside. The building's 26 signs bring in monthly rent checks ranging from $40,000 to $250,000.
Webpavement will assist you with your ideas applicable to this topic no matter your locale. Contact us to discuss your opportunities and building locations.
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