New Cellular Tower Leases
So, you’ve been contacted by a wireless carrier (such as AT&T, Sprint, T-Mobile, Verizon) about putting a cell tower on your property. This offer means you’ll be receiving a new stream of recurring income—congratulations! Before you sign on the dotted line, however, there are important matters to consider.
Is the proposed agreement fair?
Quite simply, you can bet that the answer is no. Carriers lowball rent and write initial contract terms in their favor in hopes that you, the property owner, will jump at their first offer. After all, they’re dangling the carrot of new money you wouldn’t otherwise see. But they hold the trump card—knowledge and experience. These lease agreements are, without a doubt, drafted in the carrier’s best interest. They’re dense and complex documents that skew the rights of the provisions for their benefit, not yours.
Does the contract include a Right of First Refusal Clause (ROFR) that would destroy your chances of obtaining the highest offer in the market should you choose to sell the cell tower lease in the future? Are there aspects of the cell tower construction design that could pose problems? Are you giving up rights to more space than you need to be for the next twenty to thirty years? What about rent escalations? Extension terms? Now is the time to evaluate and negotiate, but you need to know what to look for and what to ask for. The old adage “Knowledge is power” couldn’t ring more true than in this circumstance.
Carriers have experts on their side. Shouldn’t you? Protect your interests by taking advantage of the Filo Group’s deep understanding of the telecom industry and our years of negotiating hundreds of wireless lease terms. With the Filo Group’s representation, you’re certain to secure the highest rent with the most favorable terms.