Why Signage Rights Should Be Discussed Before a Lease is Signed

September 14, 2026

Signage rights are an important part of a commercial lease negotiation and can
significantly impact a tenant’s business visibility in a competitive marketplace. Signage rights
should be discussed before a lease is signed because signage is often the first point of contact
between a business and potential customers. A well-placed sign can increase foot traffic,
enhance brand recognition, and help a business stand out in a competitive market. Without
clear rights outlined in the lease agreement, tenants may later discover that they cannot display
their brand at the size, location, or level of visibility needed to support their business.

Zoning laws are often the first hurdle in determining signage rights because they
regulate the types of signs allowed, their size, illumination, and, in some cases,
animation. Permits may also be required, which can involve submitting detailed plans
and drawings for approval by local authorities. The lease should therefore address
responsibility for these approvals and should clearly allocate all costs associated with
signage, including installation, maintenance, and any municipal fees.

One of the biggest pitfalls in a commercial lease agreement is language providing
that signage is subject to landlord approval. In practice, this can allow the landlord to
deny or limit signage for almost any reason, forcing the tenant to revise designs or
accept reduced visibility. For that reason, commercial tenants should negotiate specific
signage rights in the lease that fit their operational needs. These rights may include the
types of signage permitted, the number and size of signs allowed, illumination limits, the
location of signage, any exclusivity of placement, and temporary signage rights during
construction or redevelopment. Common examples include storefront signage,
monument/pylon signage, blade signs, window signage, and directional signage. Being
specific about permitted signage does not eliminate the landlord’s approval rights, but it
can significantly reduce uncertainty and future disputes.

Landlords often maintain detailed signage criteria or style guides governing
matters such as fonts, colors, illumination, materials, and mounting methods. Tenants
should request and review these materials before signing the lease. If the tenant already
has signage renderings or design concepts prepared at the time of lease execution, it is
often advisable to have those renderings preapproved by the landlord and attached as an
exhibit to the lease. Preapproval provides clarity about what the landlord has already
accepted and reduces the risk of redesign, delay, or unexpected cost after the lease has
been signed. Additionally, even if certain signage opportunities do not exist yet when the
lease is signed, such as monument or pylon signage, it may still be worthwhile for the
tenant to negotiate a future inclusion right.