Leasing Practice Point: Signage and Advertising

Tenant signage and advertising rights generally are among the least understood and most poorly negotiated points, yet they are among the greatest sources of landlord and tenant disputes in today's commercial, industrial and retail leases.

Many landlords are surprised to learn of the general rule that a tenant has a right – provided there is no lease provision to the contrary – to place signage on the outer walls of its demised premises and with very few limitations (except as may be provided in applicable law or covenants and restrictions governing the particular property or municipality).

The reason for this broad entitlement is that the law generally does not distinguish between the exterior and interior portions of the leased premises – these issues are typically dealt with by contract. This, however, is precisely why choice of language in leasing is critical, and explains one reason why most multitenant leases define and delimit the leased premises so as