Many cell tower companies are seeking out extensions to their current leases.
So why are these tower companies contacting property owners if there is still time left on the lease? The answer: Time and money.
Let first talk about time:
A cell tower company needs to secure additional time to market the tower location to future subtenants that will bring more revenue to the tower, and to satisfy existing commitments to its current subtenants located on the tower.
Now let’s talk about money:
A cell tower company benefits financially in securing a tower site long term because it makes wall street investors happy. A lease extension acts as a guaranty that a site’s revenue will not be interrupted; this is especially true for the publically traded (Crown Castle; American Tower & SBA).
Why Do Most Landowners Agree To An Extension Of Their Lease?
A cell tower company makes it seem if a property owner does not agree to an extension the tower company will remove the tower from their property?
Not so fast, tower sites equal revenue for the telecom companies and is unlikely that revenue will be put in jeopardy not to mention the extreme cost the tower company pay to remove the tower from a property then building a new one.
A property owner’s decision to extend their lease is an important negotiation and should not be taken lightly. This transaction may mean hundreds of thousands of dollars over the life of is lease.
The cell tower companies looking to extend your lease have experts working for them, shouldn’t you?