Negotiating a Cell Tower Lease With Wireless Carriers
Welcome to Issue #8 of the Cell Tower Insider.
We were recently contacted by a landlord who had been approached by a wireless carrier to put a cell tower on their commercial property. The landlord felt that the offer made to him by the carrier was low ($1,100 per month rent with 1% yearly increases), and found our website on Google.
The entire back and forth process with the carrier lasted about 3 weeks from start of negotiation to execution of lease, but here’s what happened:
We were able to get the landlord an additional $900 per month in rent and an additional 2% in yearly rental increases. So our client wound up going from $1,100 and 1% increases to $2,000 and 3% increases.
How is this possible? Glad you asked.
It’s simple. The cell tower industry is full of pirates.
Cellular carriers pay their subcontractors bonuses in many cases to bring in the leases as low as possible and pay their leasing agents bonuses at certain price points, earning them a few hundred or few thousand extra dollars on a signed cell tower lease. Since I've been in their shoes and know the games they play, it's easy to level the playing field and call their bluff.
However, the difference between getting a 2% yearly increase and getting 3% yearly increase when your monthly rent is $2,000 per month adds up to about $170,000 over 30 years. OUCH!!
The same holds true for the pirates of the wireless industry who essentially steal your rent using scare tactics, trying to reduce your monthly payments and yearly increases by re-negotiating or "optimizing" your cell tower lease.
That’s all for today’s installment.
Remember... Happiness is a 4-carrier cell tower in your parking lot.
Make it a great day!!
Steve Kazella, Publisher
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