Cell Tower Lease Extensions | 3 Industry Secrets
Cell Tower Lease Extensions and Renewals
Many cell tower companies such as AT&T, Verizon, Crown Castle, and American Tower are aggressively pursuing cell tower lease extensions. Also known as lease renewals these companies are contacting landlords sometimes up to twenty years ahead of lease expiration. They hire agents such as MD7, Blackdot, The Lyle Company, or local site acquisition companies, to secure lease extensions with landlords with business terms that are in favor of the cell tower company – not the landlords. We want to share with you 3 tips that cell tower companies don’t want you when it comes to cell tower lease extensions.
1. They Need You Way More Than You Need Them
Your cell tower tenant has invested hundreds of thousands of dollars into their tower on your property. No matter what you are told by the cell tower’s agent, they need you way more than you need them. Your tenant is not motivated to deconstruct their tower and construct a new one nearby anytime soon. This is due to two key reasons: cost and time. The cost of deconstructing their tower and constructing a new tower nearby will run in the hundreds of thousands. It will also take a considerable amount of time (sometimes years) for the cell tower company to receive budget approval to pursue such a move, identify new landlord candidates, and to receive permits. You have a considerable amount of leverage in lease extension negotiations, much more than your tenant will ever let on.
I met with Nick at my property and engaged his services to assist us with our lease renewal. Nick was very professional, timely, and obtained results that greatly exceeded his fees. I would highly recommend Nick’s services to any landlords that have cell tower leases coming up for renewals!”
Kenny M., Managing Partner, MAR Investments
2. Any Terms Can Be Discussed For Renegotiation
Their agent may say they can “only” secure an additional lease term or they can “only” offer a “Signing Bonus” of a few thousand dollars, but the truth is anything you want to discuss can be brought to the negotiating table. Are you receiving a fair rent and a fair rent escalator? Utilizing our years of cell tower leasing experience we can secure the highest rents for your benefit. Considering a redevelopment on your property sometime in the future? Airwave Advisors can help you add in relocation language to avoid a potential future redevelopment conflict. Call us today to receive a free consultation to help you identify any key provisions that need to be improved on.
3. A Longer Lease Term May Not Be In Your Best Interest
A majority of cell tower leases include very liberal termination clauses for the tenant. This typically allows the tenant the right to terminate the lease in sometimes as little as (30) days. A cell tower company’s agent may say securing multiple extension terms will guarantee the rent check you receive for years to come, however all multiple extension terms do is lock in a landlord for a long period of time. The tenant still retains their quick (30) day termination right. So while the landlord thinks they have a (10) year lease with a tenant what they really have is a (10) year commitment to a tenant and the tenant has only a (30) day commitment to the landlord.
It is important to receive expert cell tower consultation to ensure an expert is working to secure your best interest. Cell tower companies routinely hire experts to secure their best interest in every negotiation, shouldn’t you?