Tillman Infrastructure Cell Tower Lease | 4 Things You Need To Know
We have received many calls from property owners who have been contacted by a representative of Tillman Infrastructure.
Who Is Tillman Infrastructure?
Typically, we have been contacted by property owners who own land near existing Crown Castle, SBA, and American Tower Corporation towers. The assumption is that the tower company will construct a tower nearby and then move AT&T or Verizon from the existing tower, onto their new tower at a lower rental rate. A smart move by wireless carriers to apply pressure on the tower companies to reduce rental rates.
What Business Terms Are You Seeing For Landlords?
Often, we receive leases from property owners with below market business terms. I think the worst we have seen so far is a proposal to lease 10,000 square feet of land for $300.00 per month with a 6% rent increase every five years and the lease is for a total of 99 years. The lease term is of course unreasonable. Instead it typically makes more business sense to sub-divide and sell the land the inquiring party is looking to occupy, instead of accepting monthly payments for as long as the tower exists.
How Is the Cell Tower Industry Responding?
Not well. In June of 2018 American Tower Corporation sent a non-compete letter to all their contractors stating, contractors are “…to not participate in the development of any new towers that are within a half mile of an existing American Tower Corporation site.” Within less than a week of the letter going out, American Tower Corporation retracted the requirement on their vendors stating they have received input from their vendors and their customers.
What Should I Do If Contacted By Tillman Infrastructure?
Have the project reviewed by a cell tower lease expert such as Airwave Advisors. Business terms need to be fair for all parties and signing a 25 or a 99 year agreement has a tremendous impact on your property. Don’t go up against cell tower companies alone.
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