Cell Tower Lease Optimization Companies

We averaged a 302% immediate increase in rents in 2020

More and more cell phone carriers, such as AT&T, Verizon, have enlisted third-party optimization companies, like MD7 and Blackdot, to request renegotiation of the terms of current cell tower and rooftop leases. These renegotiations usually take the form of those companies requesting that a landlord agree to a reduction of their current monthly rent.

These requests for a reduction in rent are sometimes referred to as “Rent Holiday”, “Rent Optimization”, or “Rent Reduction” programs. At the end of the day, all these companies are looking to do is to take money out of your pocket and put it into theirs.

MD7 and Blackdot usually contact a landowner via mail or phone calls stating that, due to some circumstance, (whether that be that the cell tower or rooftop leases are old, non-profitable or redundant) the landowner is now in jeopardy of losing their lease. These letters and phone conversations further go on to point out that a landowner should renegotiate its current lease to stop the cell tower lease from being terminated.

MD7 and Blackdot usually provide a landowner with the following options:

  • The landowner can agree to an immediate, significant reduction in monthly rent, sometimes by more than 50%, and, in return, the cell phone carrier will continue with the current lease.
  • The cell phone carrier will pay a landowner a lump-sum payment, usually equal to 5-10 years’ worth of current rent, in return for the landowner agreeing to allow the cell phone carrier to remain on the property, rent-free of course, for a period of 20 years or more.
  • The cell phone carrier will agree to not terminate the current cell tower or rooftop lease, in exchange for a not having to pay rent for an extended period of time, usually 2 years or more.
  • The landowner shall agree to a termination of annual increasing in rent for an extended period of time of 10 years or more.
  • The landowner shall agree to grant the cell phone carrier an option for additional ground or rooftop space.

And they want to classify these options as “Rent Optimization”. This is far from it!

These options are not beneficial to a landowner in any way, shape or form. The MD7 & Blackdot agent’s (who have sales quotas that they must reach) main focus is to get as many landowners to agree to reduce rents they are currently receiving for their cell tower or rooftop lease.  Property owners are typically led to believe that they are between a rock and a hard place in that they are going to lose something if they don’t. Unfortunately, most landowners do not have the industry background to make a truly informed decision, or the representation required to maneuver their way through these negotiations, and, ultimately, they will end up falling for the tactics employed by these companies.

MD7 and Blackdot agents, when pressed to answer questions about your site, such as, “Why is my cell tower location subject to a reduction in rent?” will not ever give you the “true answer”. And, furthermore, they don’t really care. This is where the services Vertical Consultants can offer can be of great benefit to a landowner.

Vertical Consultants can review both your present lease, the cell tower located on your property, and what options the cell phone carrier may have if they wanted to actually terminate your lease. We do all of this in an effort to assist you in making an informed decision.  Furthermore, unlike the other similar consulting companies who can only provide you advice, we will not only provide you the information you need, but we will work on your behalf to negotiate with MD7 and Blackdot to make sure you get the best terms available.

Vertical Consultants is made up of skilled cell phone industry professionals who have handled all of the components of a cell tower site and lease. As a result, we can put the pieces of the puzzle together for you, so you can make the best decisions regarding your cell tower or rooftop lease.

If you have been contacted by MD7, Blackdot or some other company looking to reduce the value of your cell tower or rooftop lease, then we invite you to contact us to discuss this matter and how you can truly optimize this situation