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Cell Tower Lease Termination Options

Notice of Termination

Vertical Consultants has been contacted by property owners who have received notifications from either their cell tower or rooftop tenants, or third-party rent optimization companies working on their behalf. These companies usually provide that a property owner’s lease has been marked for termination due to many market and industry factors, and, as a result, the cell tower company tenant would like a rent vacation.

What does this this mean for you, the property owner? It means that the cell tower company would like to stop paying any rent under the lease for an extended period (usually 1 to 3 years).

So, what do you, the property owner, get in return?  The cell tower company will not terminate the lease and seek subtenants to make it a more valuable location. But, if they do not, they will vacate the site and leave your site permanently.

3 ThingsThey Won’t Tell You But We Will

  1. If a property owner signs an amendment as provided above, and the tower company is unsuccessful in garnering a subtenant, you, the property owner, will be responsible for removing the tower, its foundation, the underground cabling, and the worthless equipment/shelter the tower company leaves behind.
    The cost of such removal could total $50,000 or more. As a property owner, you should ask these same companies who will be responsible for removing their equipment at the end of the rent vacation period and see what their answer is. You will be surprised.
  2. Why are you, the property owner, not receiving any increase in rent if you are allowing the tower company to add a new tenant, and, quite possibly, more than doubling their current revenue? Ask why they seem to get all the benefit and you, the property owner, only get the same deal as before, less several years rent you have given up.
  3. A tower company can’t easily re-locate a cell tower site from location to another, as it takes time and a lot of money. There is not only the cost to remove the actual tower, but also to migrate the telecom equipment to another site. They will also not factor this into the equation for the rent they will have to pay a similar property owner for the placement on their property.

Your Options

Vertical Consultants believes this information should be available to you at no charge. Unlike our competitors, who will charge you up to $500.00 an hour to provide you the same consultation, we can work with you during our complimentary review of your lease to explore all options available to you. You may have options that the cell phone carrier will not tell you about, which may be beneficial to you in the long run.