Cell Tower Lease Confidential Clause, Why It’s A Bad Idea

By Nick G. Foster

September 8, 2015

What Is A Cell Tower Lease Confidentiality Clause?

A confidentiality clause is a cell tower lease provision that states that all information in an agreement between you and your tenant will remain confidential. While that doesn’t seem like a bad idea at first, as you read further into the clause, it typically states that Landlord shall not disclose any terms or information in the agreement without the prior written consent of Tenant.

Why Is A Cell Tower Lease Confidentiality Clause A Bad Idea?

We are seeing a rise in tower companies and cell phone carriers inserting confidentiality clauses into cell tower lease agreements. It is a bad idea for property owners – like you – because the language restricts your ability to share your lease agreement with consultants, or investors who may be interested in purchasing your cell tower lease.

Here is an example of a confidentiality clause taken from a lease document from one of the top tower companies:

Confidentiality. Notwithstanding anything to the contrary contained in the Lease or in this Amendment, Landlord agrees and acknowledges that all the terms of this Amendment and the Lease and any information furnished to Landlord by Tenant in connection therewith shall be and remain confidential. Expect for Landlord’s attorney, accountant, broker or lender, if any, or if otherwise required by applicable law, regulation or rule of any governmental authority, Landlord shall not disclose any such terms or information without the prior written consent of Tenant. The terms and provisions of this Section shall survive the execution and delivery of this Amendment.

You can see that the clause not only severely restricts the Landlord’s right to share their cell tower lease agreement with others, it also omits professionals who can help you with your lease, such as consultants and investors looking to purchase your cell tower lease.

Why Is Your Tenant Trying To Restrict Your Rights?

Not only is your cell tower lease tenant trying to restrict your rights, they are not placing the same restrictions on themselves. They want to restrict your rights to pull a “gotcha” on you when you share your cell tower lease to others, or if you intend to sell your cell tower lease.

Cell tower companies have highly skilled negotiators on their side who will try and get you to agree to bad language such as this. Make sure you have skilled cell tower lease negotiators, such as Airwave Advisors, on your side.

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Disclaimer: The materials available on this web page are for informational purposes only and not for the purpose of providing legal advice.  

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Nick Foster Airwave Advisors

About Nick G. Foster

Since founding Airwave Advisors® in 2014, Mr. Foster has added value to over 400 clients ranging from the State of Nevada, City of Beverly Hills, to Habitat For Humanity. Mr. Foster focuses on cell tower lease renewals, buyouts, new lease negotiation, and cell site lease management. Prior to starting Airwave Advisors® Mr. Foster founded and led the Cell Site Services Group within nationwide commercial real estate services leader Cassidy Turley (now known as Cushman & Wakefield).