Got Extra Space? Rent to Advertisers

As shopping centers and malls continue to lose tenants in mass, some are capitalizing on the vacancies by leasing space to advertisers.

New start-up companies have locked in deals in recent weeks to plaster ads across the growing number of vacant storefronts in malls and shopping centers across the U.S. Ads are also popping up on other unconventional venues—security vehicles, parking space dividers and food court table tops.

Most landlords say that there’s very little downside to allowing advertisers to utilize the empty space. One advertising company, Inwindow, pays a landlord a flat monthly rate of $1,000 to $8,000, depending on the size of the ad and accessibility to heavy foot traffic. WindowGain, another in-mall advertiser, pays $2,500 to $8,500 a month, plus 10 percent to 30 percent of the rates paid by its clients.

The only concern that some landlords have expressed is the duration of the contracts. Most advertisers want to lock in a 30 or 60 day contract, but landlords want the ability to cancel the contract if a permanent tenant comes in and wants to lease the space.

Source: WSJ.com