A Tenant’s Guide to Negotiating Sign Rights in a Commercial Lease

Signage is often treated as a secondary issue during lease negotiations, addressed late in the process or deferred to an exhibit that receives little scrutiny. For many commercial tenants, however, sign rights are a core business concern. Visibility, branding, and customer access frequently depend on clear and enforceable signage provisions in the lease.

This article outlines key issues tenants should consider when negotiating sign rights in a commercial lease and highlights common pitfalls that can limit a tenant’s ability to effectively use the premises.

Common Types of Commercial Signage

Before negotiating sign rights, tenants should identify the types of signage that may be relevant to their business. Common categories include:

• Building or façade signage – Signs mounted on the exterior of the building, often above the tenant’s premises.
• Tenant panel or directory signage – Listings on shared building directories or multi-tenant identification panels.
• Monument or pylon signage – Freestanding signs serving a shopping center or office park, typically located near site entrances.
• Window signage – Graphics, decals, or lettering applied to storefront windows.
• Blade or projecting signs – Signs mounted perpendicular to the building façade, often used in pedestrian-oriented areas.
• Wayfinding and directional signage – Signs guiding customers to the premises within a larger development.

Each category raises different legal, practical, and cost considerations, and they are often governed by different rules under the lease and applicable law.

Specify the Categories of Sign Rights You Need

A common mistake tenants make is relying on a general statement that signage is “permitted with landlord’s approval.” While such language may seem flexible, it often gives the landlord broad discretion to limit or deny signage later.

Tenants should instead negotiate for specific categories of permitted signage, including:

• The number of signs allowed
• Their general location (e.g., façade, monument, directory)
• Whether signage is exclusive or shared
• Any size or illumination parameters

Being specific does not eliminate the landlord’s approval rights, but it significantly reduces uncertainty and future disputes.

Landlord Approval, Laws, and Style Guidelines

Sign rights are almost always subject to:

• Applicable laws and ordinances, including zoning, sign codes, and historic district restrictions
• Landlord approval, typically not to be unreasonably withheld for standard signage
• Existing design or signage criteria, particularly in retail centers, mixed-use developments, or office campuses

Landlords often maintain detailed signage criteria or style guides governing fonts, colors, illumination, materials, and mounting methods. Tenants should request and review these materials before signing the lease, not after.

Where possible, the lease should require that any such criteria be applied consistently across similarly situated tenants.

Permitting Is Typically the Tenant’s Responsibility

In most commercial leases, the tenant is responsible for obtaining all required permits and approvals from the applicable municipality or other governmental authority. This includes:

• Sign permits
• Electrical permits for illuminated signs
• Any required zoning or special approvals

Tenants should confirm that the lease allows sufficient time to obtain permits and install signage, particularly if signage is critical to opening for business.

Preapproval of Signage Renderings

If a tenant has signage renderings or design concepts available at the time the lease is signed, it is often advisable to have those renderings preapproved by the landlord and attached as an exhibit to the lease.

Preapproval provides clarity on what the landlord has agreed to and reduces the risk of redesign, delay, or unexpected cost after lease execution.

Allocation of Costs and Responsibilities

Signage provisions should clearly allocate responsibility for both paying for and performing the following tasks:

• Design and production
• Installation
• Ongoing maintenance and repair
• Removal and restoration at lease expiration or earlier termination

Negotiating Future Signage Opportunities

Even if certain signage options do not exist at the time the lease is signed—such as monument or pylon signage—it may be worth negotiating a future inclusion right.

For example, a tenant may seek a provision stating that if the landlord later installs a monument sign, the tenant will have the right to be included on a non-exclusive, proportionate basis, subject to reasonable rules and availability. These provisions can preserve upside without requiring the landlord to commit to installing new signage.

Temporary Signage for Openings, Promotions, and Seasonal Use

In addition to permanent signage, many tenants rely on temporary signage to support openings, special promotions, or seasonal business cycles. These signs can be particularly important for retail, restaurant, and service users seeking to build early awareness or drive short-term traffic.

Leases often restrict or prohibit temporary signage unless expressly permitted. Tenants should consider negotiating language that allows for limited temporary signage, such as:

• “Coming soon” or grand opening signs
• Short-term promotional signage
• Seasonal or event-specific signage
• Temporary window graphics or banners

Key points to address include the types of temporary signage permitted, maximum duration, locations where such signage may be installed, and whether prior landlord approval is required. Where approval applies, tenants may seek a standard that approval not be unreasonably withheld, delayed, or conditioned for signage that is temporary, non-illuminated, and consistent with other tenants’ practices.

Conclusion

Sign rights are a meaningful component of many commercial leases and deserve careful attention during negotiations. By identifying required signage categories, understanding approval frameworks, allocating responsibilities clearly, and preserving future opportunities, tenants can avoid common disputes and protect the visibility of their business.

Experienced counsel can help tenants evaluate proposed signage provisions and negotiate terms that align with both current needs and long-term growth plans.