Lots of cell tower companies are now aggressively seeking extensions to their existing cell tower leases. So why are these tower firms speaking to the landowner if there is still time left on the lease? The answer: Time and money.
- Time – A cell tower company requires to protect extra time to both much better market the tower place for future subtenants/co-co-locators it might be seeking out as source of extra income at the website and more importantly to please existing sublet dedications it might have currently made as it relates to the website, its current profits source at the site; and
- Money – A cell tower business benefits financially in that securing a website long-term relaxes the nerves of financiers as it acts as a form of a warranty that a website’s revenue stream will not be interrupted; this specifically is true for those companies who are publically traded (Crown Castle & American Tower). A homeowner requires to analyze the insurance claims that, which includes the following
A cell tower business presents
- Insurance claim # 1: “Because of the value of the long-term partnership we have with you, the property manager, we are willing to extend the existing lease for the cell tower with you”. What they aren’t telling you: That in truth, they require the expansion of time more than you do.
- Insurance claim # 2: “We are willing to pay you a ‘signing bonus’ if you agree to prolong the lease”. What do you need to know before getting a new lease agreement? What they aren’t telling you: While a finalizing benefit is great, it is generally only a tiny fraction of what needs to be supplied for the landowner’s consent to an extension of the lease.
- Insurance claim # 3: “We want to enable the lease to continue to intensify as offered under the present terms of the lease arrangement”. What they aren’t telling you: This is primarily offering you something that you already have a right to and sometimes the tower firms are actually looking for to effectively minimize a landowner’s yearly rent accelerations by having them accept particular points like a Customer Rate Index (“CPI”) lease acceleration. What the power company is not telling you, is that while your current yearly lease accelerations.