Signs, Signs, Everywhere There Are Signs

Marketing is a changing science in today's increasingly global and digital business climate. Companies no longer rely solely on the traditional forms of marketing when establishing the corporate brand. Today messages are communicated quickly and visually, which has led to an increase of corporate branding via commercial real estate. While this isn't anything groundbreaking for New York or San Francisco, two cities that are covered from street corner to street corner with corporate logos, it is quickly becoming a predomint game changer to real estate negotiations in the Midwest, where consolidations are on the rise. Many national corporations that have bought local companies are looking to signage as a way to announce an increased commitment to the area. This is especially prevalent among banks and financial institutions that are looking to consistently brand their image across the United States.

Bargaining for corporate signage has long been a "soft" element of leasing negotiations. In the Midwest, this element was typically reserved for corporate America giants like Canon, Pepsi and IBM as well as financial institutions such as retail and investment banks. But during the past several months, a new generation of savvy corporate tenants is putting signage center stage. In fact, in recent years, signage visibility has been a major criterion for many companies in making location decisions.

Exterior building signage, whether atop a downtown high-rise or on a deliberately positioned property sign in the suburban or rural markets, is a cost-effective branding strategy. Corporate signs offer 24/7 brand awareness by drawing attention to the logo and establishing a presence in the community. However the most significant advantage of corporate identity signage is the direct link it makes with customers, potential clients and also with prospective talent.

The rising prominence of corporate signage in the Midwest is also evident throughout building interiors. Many businesses utilize interior signs when establishing the brand's presence among other tenants, as a wayfinding technique or to promote a certain culture. Coyote Logistics in Chicago, for example, implements branding in its interior space to generate specific results. The transportation and logistics firm relies on its logo, specific colors and signage to promote a culture, foster innovation and establish an intentional and specific corporate identity with the company's visitors and employees.

The increasing value of corporate signage is gaining such recognition throughout the Midwest that in many cases signage, or not getting signage, is the tie-breaking factor for tenants considering multiple properties. However, securing building signage is not just a matter of asking for the rights, it is about knowing what to ask for during negotiations. In many cases municipal rules and regulations, zoning or landmark commission guidelines must be considered and thoroughly investigated. In negotiations, it is important to ask the landlord to address such issues as sign specifications, location, signage allowance and exclusivity as well as any encumbrances that may exist with current tenants.

As companies continue to emphasize branding, and the Midwest continues to transition from a manufacturingand industrial-based market to a highly mobile, consumer-based economy, the significance of corporate signage will continue to play an integral role in lease negotiations.