Determining what Industries Might be Interested in a Land Lease on Your Property

As a savvy landowner, you are continuously looking for additional revenue streams. Have you ever considered a land lease? Each industry that needs to lease land is searching for that special someone – specific types of properties in specific locations. For example, if you own a piece of property on a busy highway in South Florida, then you would probably match up well with the outdoor advertising industry.

Unfortunately, there isn’t a Tinder for leasing land, but our soon to launch app comes about as close you can get! With that said, let’s break down some general property descriptions and the types of industries who would swipe right on your listing.

Land Lease Property Type 1: Centrally Located Land in Developed Neighborhood with High Population Density

If your land is in a highly populated area in a city, there are several industries you would match up with for a land lease. The type of industry is dependent on a couple of factors.

Proximity to Major Transportation Arteries

If your land is located near major highways, then the Telecommunications and Out of Home Advertising industries would be a good match. These industries care about a few things:

  • The population size and presence or absence of built structures.
  • Demographics of the surrounding area.

Population Size and Presence or Absence of Built Structures

Cell phone carriers are looking to enhance the signal quality for their customers and prepare their infrastructure for the exploding use of mobile data. In a highly populated area most large cell towers have been installed. But, for those landowners with buildings on their property, cell tower construction companies are looking to deploy small cells and direct antenna systems (DAS) to enhance existing signal created from the larger cell towers. These systems aren’t large like a cell phone tower so if a landowner decides on a land lease with a telecommunications company you don’t need necessarily worry about there being a large cumbersome structure. They are compact and discreet structures. Landowners in densely populated areas can take advantage of the ever-expanding use of mobile traffic through a small cell lease agreement.

Demographics, and Visibility

The out of home advertising companies want to build billboards near highly visible areas. The more “eyes” that will see the billboard on your land, the more valuable that signage is to the billboard company. This gives you more leverage as a landowner when negotiating the terms of your agreement. Even if your property has buildings on it, if the building is visible from major roads with a lot of traffic, you can negotiate a billboard lease on your rooftop. The financial status of the surrounding population also plays a role. If you live in an affluent zip code where more expensive brands can advertise, then you can get more from a billboard lease agreement.

Land Lease Property Type 2: Undeveloped Land in Rural Area

Undeveloped land in a rural area can be of use to many industries, even if you think it isn’t! Depending on a few attributes, your property could be useful for several industries including the Alternative Energy industries, Recreation, or Traditional Energy.

Here are a few things to keep in mind:

  • What is the topography?
  • Does the property have electrical, water, and roadway access?
  • What is the soil type and are there surrounding properties being explored for oil or natural gas?

Topography and Soil Type

Alternative energy companies want to develop their infrastructure on flat, dry soil. The less surrounding vegetation the better. Flat land is preferred because any property with sloping or rolling land will need to be flattened, adding to the cost of development. Furthermore, your property should not be within a flood zone area that could cause major damage to the solar panels or wind turbines. For wind energy, the noise created might bother surrounding neighborhoods so land that is set apart from major communities would also be a plus for the wind power industry.

Electrical, Water, and Roadway Access

The solar power, wind power, and recreation industries are the ones that would be interested in having electrical and water access on your property.

Electrical access is a key factor that is considered when an alternative energy company is looking to lease land to develop their infrastructure. You can look at your company’s online interconnection map to determine whether your land has electrical or water access. The closer your property is to a high voltage system, the more apt an alternative energy company is to consider you for a lease agreement. Furthermore, the power generated from solar or wind energy farms might be too much for the capacity of the power grid in your area. This is something you can find out from your utility company.

These companies need to be able to drive on and off the property to build and maintain the equipment. In the recreation industry, for example if a company was to develop a dirt bike trail, people who come to use the property would need to be able to access it.

Soil Type

Traditional energy companies are looking to establish oil and natural gas leases with mineral rights with property owners. Sometimes these companies approach landowners in areas they have discovered might be rich in natural resources. However, you can take matters into your own hands by analyzing the soil type of your property. This might not be something you know about your land off the top of your head. However, if there are surrounding pieces of property that are being explored for oil or natural gas, there’s a good chance you might be lucky to. A geochemical soil gas survey is an inexpensive way to explore for soil indicators. In conjunction with other soil exploration means, a geochemical gas survey is good indicator of the existence of hydrocarbons beneath the surface. If you haven’t had your soil type analyzed yet, you best hop to it, you might just strike it rich!

Land Lease Property Type 3: Agricultural Land with Extra Space

Farm and ranch land owners with an extra parcel to let can lease to a variety of different industries. These include, Agricultural, Telecommunications, Outdoor Advertising, Solar and Wind leases.

Take your pick, your property is the most eligible bachelor. First off, a property that is already agriculturally zoned whether currently being used for farming or grazing can be leased to other farmers or ranchers. Even if it is the whole plot of land or just a portion, leasing property to farmers looking to expand their crops or increase the number of animals they raise can be beneficial to not only the landowner but in meeting the future global demand for food.

Rural areas have been largely neglected by the cell tower industry. Fortunately, for rural landowners, the rise in mobile data usage and connected devices, means the number of people driving on the roads need reliable cell tower coverage. For example, smart cars and self-driving cars will rely heavily on cell phone towers to provide their connection to the internet. For self-driving cars, especially, the ability for the cars’ sensors to function to move the vehicle or stop during a collision will be only because it has a tethered connection to the internet. Without macro sites developed in these rural areas, the future of transportation would be dangerous. This means cell tower leases will be on the rise in rural areas.

Even if you are in a rural part of the country you might still be near a major highway. This would mean you would be a good match for a billboard lease agreement.

The alternative energy industries, including both solar and wind, don’t necessarily need a large amount of property. About 50 – 60 acres is needed for a utility-scale wind energy farm. The best part about this though, is that only about 2.5 acres of that would be occupied by turbines, roadways, and various equipment. That means a landowner can still use the other portions of the property for farming or ranching. For a solar energy company, about 24 acres of land would be needed to develop a utility-scale solar farm. It’s important to note that an alternative energy lease agreement is negotiable, and landowners can make deals for smaller development projects.

Want to find your perfect match? Read this article on how to write the perfect land listing to attract the right kind of industries!