One of the secrets to making money with outdoor billboards is the ability to anticipate trends. When I refer to trend spotting, I’m not talking about predicting the future of the economy or the next big thing for consumers. I’m actually referring to the ability to identify future development in your area and its potential impact on the placement of an existing or future outdoor billboard.
Why Does This Matter?
Future development is important because it can mean the difference between owning a successful, profitable billboard or a dog that no one will want. For instance, imagine you invest in a billboard on the outskirts of town where there is less traffic. However, what if you knew that location was in the path of progress where a highway extension was about to be constructed? Do you think the value of that billboard would increase in terms of lease rate and resale value? Absolutely.
How to Spot Trends
The good news is that real estate development doesn’t actually happen overnight. There are usually signs of what is to come and this information is publicly available. The secret is to look around and absorb as much information as you can. In fact, the following is a sample checklist:
- Check out an aerial map of the area using one of the major search engines such as Google or Bing map service. Do you see blank areas without streets or houses? That’s where you’ll find opportunity.
- Where are the people moving to? In particular, I would be looking at the path of progress for traffic and relocation on the outskirts of the city. If you see the movement pushing in a particular direction, focus on that area and assess whether or not there are locations that would be suitable for a billboard.
- Where are the new roads and highways planned?
There are a few other tasks you can do in order to proactively get the scoop on future development.
- Search the local city website to see if they have their long-range plan posted publicly. Check to see when it was last updated.
- Follow up with the local city planning or economic development department to discuss the city’s future development goals.
- Talk to the local brokers and find out what trends they see. It’s their business to know the local real estate market; you will definitely learn quite a bit.
In summary, anticipating trends as it relates to investing in outdoor billboards is not difficult once you know the process and approach. Armed with the proper information, you should be able to take advantage of it and ride the wave of opportunity instead of letting it pass you by.
Outdoor Billboards - How Anticipating and Spotting Trends Can Make You Money
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