Who is Diamond Communications?
Diamond Communications LLC is a privately held cell tower company with at least 1,000 cell towers with tenants (according to their website). Their principals are veterans from other tower companies such as AAT Communications (which was acquired by American Tower Corporation), SBA Communications, and other companies.
What should you look for in a Diamond Communications cell tower lease?
Make sure all terms are fair and reasonable. Here is a list of items which we are concerned about in their lease template:
- Option Payment of $100. By granting an option to a company you are allowing them to tie up your land for one year or longer. Typically options are for two years max. Is $100 fair compensation for having your land tied up for that amount of time?
- 40 year lease agreement. Industry average for cell tower leases is 20-30 years. The lease we reviewed is asking to bind the property owner to the agreement longer than the industry average.
- Low rent. The contract we reviewed had a significantly low rent amount. Make sure you receive a fair rent when leasing your land to any company.
- Extremely low rent escalator of 7.5% every five years. Rent escalators are extremely important to get right and 7.5% every five years is very wrong. The whole point of a rent escalator is to make sure the value of the dollar the Landlord receives is maintained as we experience inflation. Inflation takes place everyday and typically contracts adjust for inflation annually (not every five years).
Remember that you are negotiating with cell tower lease experts on their side. Shouldn’t you have experts on your side?
What Should You Do If You Have Been Contacted?
Uniti Towers are professionals in the cell tower leasing industry who understand the industry and cell tower leases. Make sure you have experts on your side and contact Airwave Advisors today!
Call Us Today
***We are not affiliated in any way with Diamond Communications. If you reached this post by error and are trying to reach Diamond Communications, please visit diamondcomm.com***
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).