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Cell Site Lease

LANDOWNERS - Don't Leave Money on the Table!

  • Have you been approached about a cell tower lease on your property?

  • Do you know the value of your existing lease?

  • Are you receiving proposals to buy out your lease or extend the term?

  • Has your Lessee/Tenant threatened to move the tower?

  • Are you receiving requests to place small cells on your property?

  • Are you receiving requests for consent to modifications at the site, including fiber placement?

  • Are you confident that your rent and escalations are correct?

THINGS YOU NEED TO KNOW

The Value of Your Lease

All cell tower leases are not the same. The value of your lease depends upon several factors: location, number of carriers on the tower, future demand for carriers, length of time remaining on the lease and the tower economics/margin. For a lease buyout, we have seen a tower company pay as much as $2,000,000 and as little as $25,000. 

Rents have a similar disparity and are normally locked in for a long term with a periodic escalator. When reviewing a lease renewal proposal, you may notice that the tower company or carrier (Lessee/Tenant) proposes changes such as adding a Right of First Refusal (ROFR) or removing a consent provision or changing to a CPI escalator.

 We can tell you why they want these changes to the contract, discuss their incentive for obtaining them and guide you on how to counter these requests.

 We will give you a reliable estimate of the value of your lease based upon our 24 years of experience in the industry. From there, we can help you negotiate the most favorable terms possible in your contract.

Do I Need a Consultant?

Wireless leases, both for towers and rooftops are  very specialized and narrowly focused contracts. Even most attorneys do not know the various nuances of these contracts and frequently enlist expert industry assistance. The tower companies and wireless site aggregators use highly trained, experienced negotiators and so should you. 

We have seen firsthand landowners and building owners trying to do it on their own and agreeing to financial and legal terms that could have been better. Once the contract is signed, it cannot be undone!

We have seen landowners, who were averse to paying consulting fees, leave more than 20 times our fee on the table due to insufficient knowledge of the industry and its contracts. Don't be that landowner!

We will have your best interests as our primary goal and will get the best deal possible. 

The Tower Companies

Crown Castle, American Tower and SBA Communications are the big three tower companies in the U.S. There are also many smaller, private companies, Vertical Bridge being the most notable. They have excellent business models consisting of long term recurring revenue which escalates periodically. Once a tower is profitable (normally two tenants) the profit margin for each additional tenant approaches 95%. The growth of these companies has been phenomenal over the past 20 years and the future is bright. The demand for wireless data in the US is expected to grow 30% over the next five years, according to Crown Castle. This will drive continued demand for towers and small cells.

For several years the tower companies have established large programs for the purpose of extending their ground leases and buying the land beneath their towers. They use professional, experienced negotiators to negotiate these transactions.  You should also be represented by someone with a high level of expertise in this field. We helped develop one of these programs and trained many of the current negotiators in the industry. Call us today to discuss your lease.

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Small Cells

Small cells are a key component of the industry as data demand grows and 5G develops. These  include: DAS (distributed antenna systems) most common at large venues; small cell networks of antennas attached to utility poles  or other short poles along rights of way; and rooftop installations. The preferred connection (backhaul) is by a fiber network. Most of the carriers are using small cells to densify their networks. With the high demand for data, these "fill in" sites will ensure that the network can handle the higher capacity.

If you have been approached about fiber placement or small cell development on your property, please call us for expert guidance on contractual terms and economics.

Lease Compliance

Do you know if your rent and escalations are correct? If you receive revenue share as part of your rent or a CPI escalation, there is a good chance your rent has not been paid correctly.

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Is the tower company or carrier operating within the designated lease area? Are their utilities within designated easements? It is not uncommon to have these issues.

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Is the cell site being properly maintained and operating in accordance with regulatory guidelines?

We can answer these questions for you and determine the proper course of action to correct the issues.

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It's Not Just About $$

Do not sign a wireless agreement without letting us review it. The documents are slanted toward the industry and many terms are detrimental to you, but negotiable. In addition, most attorneys are not familiar with these documents. We always recommend that an attorney review the final document after we have negotiated changes in your favor. We have several attorneys who work with us.

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