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Lease Extensions – Overlooked Issues

Vertical Consultants has been contact by landowners across the United States who have been approached by their cell tower tenants aggressively seeking to extend their current lease. So, why are cell tower companies contacting a landowner if there are still several years remaining on the term of that agreement? The answer is usually tied to both time and money.

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Vertical Consultants has assisted property owners throughout North America who have been contacted about negotiating extensions to their existing cell tower lease agreements. We can assist you with answering the important questions listed below:

  • Why does a tower company want to amend my lease when there are 5, 10, or more years remaining on the current term of that agreement?
  • What is the fair market value of rents for my property, and should it be based on the current rent amount?
  • How will agreeing to an extension of my current lease term affect the overall value of my property?
  • Does a tower company need to extend my lease to get additional tenants, and, if so, should I have the right to share in revenues received from such additional tenants?
  • If I do not agree to an extension of the current lease, can the tower company move its tower?
  • What is the current value of my lease to the cell tower company, and how should this be calculated?
  • How much revenue is the tower generating for the tower company, and why won’t the cell tower company disclose such information to me?
  • How many years should I agree to extend my lease for? What are the disadvantages of extending your lease for too long of a term?
  • Is my current lease paying me rent that is fair market value, and what factors should be considered in determining this amount?

The decision a landowner makes today as it relates to an extension of its current lease may mean hundreds of thousands of dollars over the life of is lease, as a few hundred dollars more a month means a lot when paid over 10, 20, or more years. This is an important transaction and should not be taken lightly, as, at the end of the day, as noted above, it could mean a lot if not structured correctly.

The cell tower companies, as much as they would like you to believe otherwise, are not on your side, nor will they look out for your best interest, as their primary interest is to get the best deal for their company, not for you. Their first concern is their bottom line, shouldn’t yours be as well?

Contact us today so that we can assist you in reviewing your proposed lease extension and work on your behalf to make sure you get fair value for allowing a tower company to extend their lease. Our initial review is free of charge.