Landlords are looking up for additional revenue streams—up on the rooftop, that is. Rooftop signage has dramatically increased in popularity as landlords look for ways to maximize cash flow. For owners with well-located buildings, the additional income can be significant. We sat down with CBRE VP Izzy Eichenstein, who recently completed a rooftop signage deal at an industrial facility near LAX, for an exclusive interview to talk about why rooftop signage is becoming more popular, how the deals are structured and what landlords need to know before signing a rooftop signage deal.

GlobeSt.com: How does rooftop signage create an additional revenue stream?

Izzy Eichenstein: This new type of billboard near airports is clearly visible and eye-catching to passengers landing. TV studios and even politicians have recognized this as an opportunity to advertise television shows and political campaigns. They in turn pay money to property owners for the right to use their building rooftops for this purpose. This type of signage is quite different than standard billboards along freeways, as it grabs the attention of passengers who aren't otherwise preoccupied by driving or talking on the phone (since during landing all such electronic devices have to be turned off). In this way, this newer mode of advertising has proven quite effective.

GlobeSt.com: What are the requirements and restrictions on rooftop signage?

Eichenstein: Restrictions vary depending on the city. One important example, which applies to every airport is that the lighting at night or day must not pose a hazard to incoming flights; any kind of reflection is prohibited.

GlobeSt.com: Why has this become a trend recently?

Eichenstein: Looking and creating additional revenue streams became much more of a topic after the financial market crash as landlords were looking for other ways to leverage their properties. Rooftop advertising is a great our-of-the-box way to maximize revenue by using an otherwise unusable space. Once property owners read about what CBRE was accomplishing for clients with airport billboards, it catalyzed a flood of interest and requests ever since.

GlobeSt.com: How is a rooftop advertising deal unique, and what should landlords know? What about brokers working on these deals?

Eichenstein: A landlord must confirm that their building is visible to passengers landing at a nearby airport whether it's JFK, O'Hare, or LAX. Brokers benefit from a referral fee once a location is utilized. A rooftop deal is unique in that it transforms idle space into income. The Star Trek ad this month located near LAX airport for example is a new, creative image that had not yet been seen before in a regular ad.

GlobeSt.com: Can you give me an idea of the additional revenue that a landlord can make by utilizing rooftop signage, and any costs from the operations side?

Eichenstein: Revenue from rooftop ads varies widely, from the spectacular Amazing Race ad, which used more than 100,000 square feet of space, to the Bernie Sanders ad that only measured 12,000 square feet. The costs depend on the amount of square footage utilized for the rooftop billboard. Due to client confidentiality, I can't comment on specifics but rooftop ads can run as high as $30,000 per month.

GlobeSt.com: How does rooftop signage create an additional revenue stream?

GlobeSt.com: What are the requirements and restrictions on rooftop signage?

GlobeSt.com: Why has this become a trend recently?

GlobeSt.com: How is a rooftop advertising deal unique, and what should landlords know? What about brokers working on these deals?

GlobeSt.com: Can you give me an idea of the additional revenue that a landlord can make by utilizing rooftop signage, and any costs from the operations side?

Instant Insights /

Landlords Look to Rooftops for Additional Revenue

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