Wireless carriers are contacting commercial property owners in hopes of securing cell tower lease agreements to expand services and accommodate the exponential growth in mobile technology. Before signing a rooftop cell site agreement, take time to review the following variables:
- Maximizing Rents: Building owners have the “keys to success” in negotiating lease agreements with wireless carriers. It is important to understand that two separate rooftop properties in close proximity can be assigned measurably different values based on the needs of the wireless carriers. Similarly, property and building owners must recognize the value to the wireless carrier of utilizing the cell site for telecom purposes rather than conventional real estate purposes.
- Potential Restrictions When Selling Your Property: Many wireless carriers hope to take the decision-making power away from building owners. For example, placing limitations when a cell site lease is transferred to a new owner and/or demanding a right of first refusal. Although this may not seem like a significant concern for a cell tower site located in an underdeveloped area, unforeseen risks often exist. Before cell site acquisition, a building owner must weigh the pros and cons, identifying potential risks that may result in selling or refinancing the building or property.
- Equipment Installation/Structural Integrity: Wireless carriers are working strategically to expand networks—not to maintain them. Cellular companies are implementing new technology to manage the increased call volume and more data consumption. Property owners must understand not only what will be installed on their building, but also how this structure will impact them today and in the future.
- Existing/Future Tenant Interference Issues: Upon installation of new wireless equipment, potential challenges may result. For example, occupants of the building may experience interference with telecom equipment which is utilized to maintain efficacy of of system operations. Property owners could potentially lose revenue if their tenants, as well as daily operations, are affected negatively due to the installation.
- Restrictions on Future Development: Building owners should fully understand not only the rent they will be receiving from a rooftop lease, but also what they will be giving up such as involvement for future developments and renovations of the existing structure. If property owners want to continue to have a voice regarding their property or building, it is important to include relocation provisions and/or termination rights within the cell site lease agreement.
Please contact us today to discuss a proposed or existing lease and receive a free estimate of our consulting services.