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Billboard ground lease calculator
Total rent over a lease, with yearly increases.
Total rent over the term
$96,733
20 years, rising 3.0% a year.
Rent in the last year
$6,313
Flat rent as a share of revenue, year one
15.0%
Rent at 20% of revenue, year one
$4,800
$1,200 more than the flat rent.
How it works
- 01A ground lease pays the landowner for the spot the billboard stands on.
- 02With a yearly increase, rent in year n = first-year rent × (1 + increase), raised to the power n − 1.
- 03Total rent = the rent of every year in the term, added up.
- 04Percentage rent = what the board earns in a year × the landowner’s share.
- 05Some leases pay a flat rent plus a share of revenue. Read the lease to see which you have.
Questions people ask
What is a rent escalator?
A set raise in rent, written into the lease. It may come every year or at each renewal.
What is percentage rent?
Rent set as a share of what the billboard earns. The landowner gets more when the board earns more.
Which is better, flat rent or a share of revenue?
Flat rent is simple to plan. A share moves with sales. Run both here and compare them over the full term.
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