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Many tower companies are now aggressively seeking out cell tower lease extensions to their current cell tower leases. Vertical Consultants has assisted property owners throughout North America who have been contacted about negotiating cell tower lease extensions to their agreements.

So why are these tower companies so interested in cell tower lease extensions if there is still time left on the existing lease?  The answer: Time and money:

  • cell tower lease extensionsTime– A cell tower company needs to secure additional time to both better market the tower location for future subtenants/co-locators it may be seeking out as source of additional revenue at the site and, more importantly, to satisfy existing sublet commitments it may have already made as it relates to the site, its current revenue source at the site; and
  • Money– A cell tower company  benefits financially in that securing a site long-term calms the nerves of investors, as it acts as a form of guaranty that a site’s revenue stream will not be interrupted; this especially holds true for those companies who are publicly traded (Crown Castle & American Tower).

Vertical Consultants can assist a property owner in interpreting the claims that a cell tower company presents. Most landlords agree to an extension due to the illusion created by a cell tower company representative or agent. Once façade that is created is that a landlord is securing revenues for the lease by agreeing to an extension. What is the true story? A majority of all tower and rooftop leases have extremely liberal tenant termination clauses and, as a result, any extension agreed to by the landowner basically provides the tower company with a long-term commitment from the landowner with no reciprocal agreement from the tower company.

Cell Tower Lease Extensions: A Lot of Money’s At Stake

When landlord’s decide to agree to cell tower lease extensions, remember it’s an important negotiation and should not be taken lightly. The structure of this transaction may mean hundreds of thousands of dollars over the life of is lease. The cell tower companies are not on your side, they secure the best deal they can make for themselves. Offering cell tower lease extensions are another way they often tip the tables in their favor. They will not look out for your interest just because they have been paying you rent all these years. Since the cell tower company’s top priority is to make the best deal for their bottom line, shouldn’t yours be as well?

We work with landowners to make sure that if they are open to extending their current cell tower lease that they “get the most but give up the least”. 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 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 correctly structured correctly.

Contact us today so 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.