Property owners with cell towers on their land are constantly contacted by their tenants to extend the current term of their leases. Even with 10 or more years left on a lease, tenants still need to add additional years to the lease term.
So when should you say “no” to a lease extension?
First, when your tenant will try to extend the lease based on a modest one-time payment or a small rent increase and not the value of the cell tower site to that company. A property owner needs to determine the value the tower site to tenant and that usually exceedsthe rent a property owner is currently being paid; Secondly, if a tower company is asking you to agree to additional lease terms that may be detrimental to future development, disposition or financing of the property owner’s overall property;
You must be aware of the true value of your property to the cell tower company leasing your land and know the facts surrounding your lease before you sign an agreement, especially one that affects your property for decades to come.