How Advertising on Media Facades of Buildings Can Increase Property Value and Investment Profitability
I’d like to share my thoughts on how modern media facade advertising can make your real estate investments even more profitable. This article is not just dry analytics; rather, it’s a friendly discussion of my observations and experience. There will be plenty of numbers, real-life examples, and, of course, humor, because what would our field be without it? So, let’s get started!
Why Advertise on Facades?
Let’s start simple: imagine a typical Class B business center somewhere in the city center. People walk by, look, but don’t notice anything special. Just an ordinary building, blending into the background. Now picture the same building with a bright media facade, displaying commercials, beautiful images, and news every day. It’s a different story, isn’t it? A media facade makes the building a focal point, and if people notice the building, it increases its attractiveness, value, and profitability. Now, let’s understand why this works.
How Media Facades Work: From Eastern Europe to Dubai
Now let’s dive into specific numbers to give a clearer picture of the real benefits and returns on media facades. We’ll review three cities: Warsaw (Eastern Europe), Paris (Western Europe), and Dubai.
Warsaw
Basic Data
€20 per m² per month
Average rent in a Class B business center
10,000 m²
Average business center size
€300,000 (one-time expense)
Media facade installation cost
€12,000
Monthly maintenance costs
€18,000 per month
Media facade advertising cost
Income without a media facade Annual rental income = 10,000 m² × €20 × 12 months = €2,400,000
Income with a media facade. Due to the media facade, the rental rate increased by 10%:
€22 per m²
New rental rate
10,000 m² × €22 × 12 months = €2,640,000
Annual rental income
€240,000 per year
Additional rental income
€18,000 × 12 = €216,000
Revenue from media facade advertising
€2,640,000 + €216,000 = €2,856,000
Total annual income with a media facade
€12,000 × 12 = €144,000 per year
Media facade maintenance costs
€2,856,000 - €2,400,000 - €144,000 = €312,000 per year
Net additional income
Payback Period Investment in the media facade (€300,000) pays off in approximately 0.96 years (about 11.5 months)
Paris
Basic Data
€35 per m² per month
Average rent in a Class B business center
10,000 m²
Average business center size
€500,000 (one-time expense)
Media facade installation cost
€18,000
Monthly maintenance costs
€40,000 per month
Media facade advertising cost
Income without a media facade Annual rental income = 10,000 m² × €35 × 12 = €4,200,000
Income with a media facade. Due to the media facade, the rental rate increased by 15%:
€40.25 per m²
New rental rate
10,000 m² × €40.25 × 12 months = €4,830,000
Annual rental income
€630,000 per year
Additional rental income
€40,000 × 12 = €480,000 per year
Revenue from media facade advertising
€4,830,000 + €480,000 = €5,310,000
Total annual income with a media facade
€18,000 × 12 = €216,000 per year
Media facade maintenance costs
€5,310,000 - €4,200,000 - €216,000 = €894,000 per year
Net additional income
Payback Period Investment (€500,000) pays off in less than 0.56 years (about 7 months)
Dubai
Basic Data
€25 per m² per month
Average rent in a Class B business center
15,000 m²
Average business center size
€800,000 (one-time expense)
Media facade installation cost
€25,000
Monthly maintenance costs
€60,000 per month
Media facade advertising cost
Income without a media facade Annual rental income = 15,000 m² × $25 × 12 = $4,500,000
Income with a media facade. Due to the media facade, the rental rate increased by 20%:
€30 per m²
New rental rate
15,000 m² × $30 × 12 months = $5,400,000
Annual rental income
€900,000 per year
Additional rental income
$60,000 × 12 = $720,000 per year
Revenue from media facade advertising
$5,400,000 + $720,000 = $6,120,000
Total annual income with a media facade
$25,000 × 12 = $300,000 per year
Media facade maintenance costs
$6,120,000 - $4,500,000 - $300,000 = $1,320,000
Net additional income, per year
Payback Period Investment ($800,000) pays off in less than 0.61 years (about 7.5 months)
Five Key Mistakes and How to Avoid Them
Let’s now talk about the common mistakes that may face those who decide to “ride the wave” of media facade advertising and how to tackle them.
01. Insufficient attention to content 02. Choosing the wrong location 03. Lack of a clear strategy
04. Ignoring local laws and regulations 05. Underestimating maintenance costs
01. Insufficient attention to content 02. Choosing the wrong location 03. Lack of a clear strategy 04. Ignoring local laws and regulations 05. Underestimating maintenance costs
Media facade advertising is not only a tool to attract attention but also a powerful way to increase the profitability and return on investment of your property. Well-planned expenses can pay off in just a few months and bring profit for years to come.
Remember, successful development is not just concrete and glass but also the right decisions that make your project stand out from hundreds of others. So go for it, and let your business center become the star of the city!