CNN building-top signs unveiled last year in Hollywood were the first in Los Angeles to feature animated electronics ?a white line flows through the center of the network? familiar lettering.
But they may be among the last. Under a sign ordinance that could go to the Los Angeles City Council this month, such innovation could be discouraged if not forbidden. The ordinance is aimed at supergraphics and electronic billboards, but it would include the new generation of electronic building-top signs.
That could be bad for landlords. Building-top signs have become a valuable tool to recruit or retain tenants in lease negotiations during this recession.
Gary Toebben, president of the Los Angeles Area Chamber of Commerce, is concerned that the ordinance could stifle the kind of creativity on display with the CNN signs.
?ou would expect new sign designs and variations and mediums would originate in Los Angeles,?Toebben said. ?here are probably some people who think that every sign ought to be designed for a small Midwestern community, but that? not what Los Angeles is. We would certainly urge caution in terms of creating restrictions that would limit the creativity of our businesses.?p>The Los Angeles Department of City Planning, which wrote the draft ordinance, did not return calls. According to insiders who have reviewed it, the measure would ban new electronic signs that have moving elements. While that? aimed mainly at electronic billboards, it would also target the smaller electronic building-top signs, such as the ones on the CNN building. Animated signs could be allowed by the city under special conditions ?in a sign district, for example.
For those calling for restrictions on the city? electronic billboards and supergraphics, building-top signage isn? a big issue, but it is a concern.
Dennis Hathaway, president of the Coalition to Ban Billboard Blight, said he did have some concerns about them.
Animated electronic building-top signs add to ? potential visual clutter in the city,?Hathaway said.
Signing up
Buildings are defined by their corporate identities: For example, the CNN Building or the newly christened Variety Building are known by their marquee tenants, whose names are emblazoned above the top floors.
In a recession such as the current one, building-top signage often becomes even more valuable and a key part of negotiating lease deals. In the case of CNN, the landlord gave the broadcaster deluxe signage rights to get CNN to stay at the Hollywood tower. Variety? Miracle Mile signage helped lure the show biz publishing company to new offices.
?n this downturn, any added element to create value for your user is clearly an advantage,?said David Simon, managing partner of Broadreach Capital Partners LLC, which retained CNN at its 14-story 6430 Sunset Blvd. building.
CNN? four electronic signs, which cost the broadcaster a total of $250,000, are some of the first in the country to feature an animated graphic; Las Vegas also has animated building-top signs.
?f we weren? able to deliver, they probably would have vacated the property,?Simon said.
When times are good and vacancy rates low, tenants often have to pay their landlords for signage rights. But in today? economy, landlords are more willing to give the rights for free to nail down a big lease.
Because the value of building-top signage is largely determined by the visibility and size of a property, deals range widely.
In boom times, signage rights, which typically last the life of the lease, can be worth as much as $1 million at top properties. In down markets, the value is far less ?going all the way to giveaways to close the deal.
?ttracts attention?/b>
CNN? animated signs went live April 2008. That was after the network inked a 15-year deal for about 40,000 square feet that? valued at about $20 million. The signage rights were included at no additional cost and CNN had its signs manufactured by a third party after they were designed by Playa del Rey-based Selbert Perkins Design Collaborative. The design company did the work under contract with the landlord.
Robin Perkins, a partner at Selbert Perkins, said electronic signs with animated elements are the future of building-top signage. She opposes banning animated graphics on building-top signs, because she believes they add value for tenants and properties.
?t not only attracts attention but it will attract other businesses to the area,?she said of the CNN sign. ?t is all about economic development. These kinds of signs support that idea.?p>CNN did not return calls seeking comment.
Signs that aren? animated, such as Variety?, wouldn? be an issue under the proposed ordinance. The company? large building-top signs at 5900 Wilshire Blvd. were ?ravy on top?of its lease, said Kimberley Gebbett, Variety? director of marketing. The company inked a five-year deal for 55,000 square feet last year. The signs, which are illuminated with red LED lighting, went live in December when the company moved in.
?e are very, very pleased with it,?Gebbett said. ?he reaction has been fantastic. I think it was important for us.?p>Ratkovich Co. purchased the building in 2005. Clare De Briere, the company? chief operating officer, said adding new building-top signage helped convince Variety to make the 30-story Miracle Mile tower its new home.
?e pursued Variety very hard, we worked very hard to get that transaction,?De Briere said. ?e listened to them and gave them what they were asking for.?p>Ratkovich didn? charge Variety a separate fee for the signage rights ?the value of the signage rights was incorporated into the lease. Variety paid Young Electric Sign Co. of Salt Lake City to create and install both signs for $160,000.
