Who are Uniti Towers?
Uniti Towers is a subsidiary of Uniti Group, Inc. a publicly traded company (NASDAQ:UNIT). Their parent company has subsidiaries such as Uniti Towers, Uniti Fiber, and Uniti Lease. According to their SEC filings they have 630 cell towers in the United States.
What should you look for in a Uniti Towers Lease?
We have reviewed many Uniti Towers cell tower lease agreements on behalf of property owners. Uniti Towers typically holds their cell tower leases under the entity Uniti Towers LLC, a Delaware limited liability company having a mailing address of 10802 Executive Center Drive, Benton Building, Suite 300, Little Rock AR 72211. Here are some bullet points on their lease.
- They use an AT&T lease template that has been revised to meet their needs.
- They typically request at least a two year option to build the cell tower. The option rents they have proposed in the leases we have reviewed have been very low. Such as $700 for a one-year option. Remember that a two year option ties up your land for two years, so you need to be compensated accordingly.
- The most recent lease we reviewed they wanted a 90 year lease! This is obviously WAY too long. Industry standard is typically 20-30 years. It is typically not smart business to enter into an agreement that will expire after you and I are long gone.
- The proposed rent escalator we reviewed is 10% every five years. This is a really bad rent escalator as it does not keep up with the rate of inflation in the United States.
- Beware their removal language. In the lease we reviewed it stated that if they don’t remove the tower in 120 days after lease termination, they can abandon the tower and now it is your problem. Obviously at lease termination they will abandon the tower, why pay over $50,000 to remove a cell tower when you can walk away and its now the property owners problem?
- Right of First Refusal can be found usually around Section 23 of the lease and this is an absolute horrible provision to have in your lease. In the event you want to sell your lease one day, this language will cost you tens of thousands of dollars in sales price. Most buyers of cell tower leases won’t want to bid on a cell tower lease that has this provision. Why waste time bidding on a contract when you know someone can just match your bid and take the deal?
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 Uniti Towers. If you reached this post by error and are trying to reach Uniti Towers, please visit www.uniti.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).