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Cell Lease Termination Notices

Landowners are rightfully taken aback when they receive a notice that their cell site lease is being terminated. If you do receive a notice stating that your lease is being terminated, you need to consider the following:

Remove All Cell Site Equipment (Rooftops): When a building owner receives a notice of the lease termination, the wireless tenant, the majority of the time, requests that their equipment remain on the site. They often promote that the equipment, which they have no further use for, can somehow be valuable to another wireless carrier. This is highly unlikely and is only a ploy by the telecom tenants to eliminate the cost of the removal of their cell site equipment and cost of restoring your building. Vertical Consultants advises its clients that they do have options regarding the removal, as well as the restoration of their rooftop.

Cell Tower Removal and Restoration: Tower site landlords who do receive a notice that their lease is being terminated should be aware of the following:

No Plan-Remove The Tower: Unless you have a plan of what you will use the tower for after the cell tower exits the property, it is best to have the cell tower removed and your property restored. Some property owners fall for the sales pitch provided by the cell tower company that another tenant for the tower is right around the corner, but, if that were the case, they would not be terminating the lease themselves. If you have to remove the tower in the future, it could cost upwards of $100,000. Vertical Consultants has assisted some clients whose lease has been terminated to negotiate a new lease with another carrier, but it is a tricky situation, and, again, a property owner should have a plan in place before allowing the cell tower to remain after a lease termination.

Please Abate My Rent: Tower companies will sometimes make a demand that you allow them to stop paying rent until they can find a new wireless carrier to occupy and use the tower site. If you say no, they will immediately terminate the lease. There is little motivation or upside to allow the tenant to remain without paying rent unless significantly better terms can be renegotiated, a dramatic increase in rent once a new tenant is found. No matter what you agree to as it pertains to an abatement of your cell tower company’s rent, we never advise you to relinquish that tenant’s obligation to remove the cell tower and restore the property to its prior condition.

Landowners and building owners alike are also being contacted by third-party companies working for wireless carriers who suggest that your lease may be terminated if you do not agree to reduce the rent you are receiving and that you also must agree to more favorable terms for the tenant. These third-party companies use scare tactics more and more often.

Contact us today, and we will review your lease and your tower site to see what options you truly have and how to optimize those options.

Vertical Consultants is always open to providing you with not only references from clients we have assisted, but we will let you speak to them directly.

Results Matter: In 2022, Vertical Consultants averaged a 302% immediate increase in rents being received by our clients. We get results by being the only full-service telecom consulting firm that can handle your telecom, real estate and negotiation questions all under one roof. No other consulting firm can say that, nor can they match our results. “Advice is Nice but Results are Better”