If you already have a cell tower lease, then you might be aware of certain lease extension and renewal options at your disposal. However, many property owners go into cell tower leases with very little information about what they can and cannot do, especially if they did not get the help of a cell tower consultant from the start. Consequently, a large percentage cell tower lease owners get stuck with a bad deal when it is time to begin the extension or renewal process.
In any case, you probably have plenty of questions about the ins and outs of cell tower lease extensions, renewals, and negotiations in general. So, what does a standard cell tower lease renewal or extension look like? How much power do you have to negotiate a renewal or extension before your lease ends? What can you do to get a better cell tower lease agreement? Finally, how can a cell tower lease consultant ensure the best possible outcome and make the entire negotiation process easier for you?
In today’s guide, we will answer all of these questions and more, but first, it is important to understand what to expect from a typical cell tower lease renewal before you ever begin the negotiation:
The Typical Cell Tower Lease Renewal Process
First and foremost, it is important to understand that you do have the power to negotiate in advance of a cell tower lease renewal. In fact, the wireless carrier or company with which you signed the original contract may contact you years before your lease is up to discuss renewal and extension options. Most wireless carriers do this as a way to hedge themselves against flaky or disinterested parties; they want to gauge your interest in renewing your lease so that they can adequately evaluate their options.
Regardless of the timeline, most cell service companies will contact you first about a cell phone tower lease extension. The same applies if they are interested in renewing cell tower leases with you. In either case, you should be wary of initial offers that are put on the table. Many providers will try to lowball you with their renewal offer, justifying a bad deal by saying that they have other places where they could move the tower or more enticing leasing options available to them. This is one of the main reasons that you should hire a cell tower consultant with experience in cell tower leases to ensure that you do not end up getting much less than you deserve.
Once an offer has been made, you have the opportunity to either sign on the dotted line or put up a counteroffer. Many property owners worry that counteroffers could cause them to lose out on the lease entirely, but this is rarely the case. In most situations, cell service companies need the space much more than you need it, so they are willing to negotiate to make an extension or renewal happen. It is also a good idea to counteroffer to see if their initial offer really is the best that they can do. Frequently, wireless carriers will offer renewal signing bonuses that make bad lease renewals seem more appealing. Uninformed property owners might be more inclined to sign right away, even if it means taking on less favorable lease terms.
When both parties have reached an agreement, you can sign to extend or renew your cell tower lease. More than likely, not much will change on your end, though any changes will depend on the details of the new agreement. Your monthly income may differ going forward and you may even have different kinds of cell tower equipment installed on your property. Otherwise, your lease should continue (more or less) as it did before the extension or renewal.
Using The Extension Negotiation Process To Get A Better Agreement
Many first-time cell tower lessees find that their lease terms were not, in retrospect, all that favorable. For this reason, the upcoming end of a lease is a great time to consider what changes you would like to make to move the scales more in your favor. Whether you want to increase your monthly income or give yourself more power to sell or assign the lease to a third party, you will want to consider your interests long before the negotiation begins.
If you already know that you want to renew your cell tower lease, it is still best to wait for the wireless carrier to come to you, to not appear too eager. Simply come to the negotiation knowing what you want to get out of it and work with a professional to negotiate the best possible terms.
Should You Aim For The Longest Cell Tower Lease Extension?
This is a tough question to answer, as it largely depends on the terms of your lease. You could potentially get cell tower lease extensions for more than two decades, but this tactic may not be in your best interest. For example, you might get a very long agreement that has an early termination clause. This means that you sacrificed certain terms to ensure the longevity of your agreement, only to give the cellular carrier the power to end the lease at any time.
You also have to think about negotiating fixed payments over such a long period of time. With inflation, rising costs, and even the prospect of higher tax rates, getting a long cell tower lease extension or renewal could make a good deal far less valuable 20, 10, or even just 5 years from now. So, in many cases, it is best to strike a balance between the length of the agreement and the other beneficial terms of the lease.
Using A Cell Tower Consultant To Understand Your Cell Tower Lease Options
As you can see, getting the best possible deal out of a cell tower lease renewal or extension can be complex, especially if companies are approaching you years before your current lease has even ended. Cell tower rates can vary from one provider or location to another, making it even harder to do market research and take part in quality negotiations on your own. Fortunately, this is where cell tower lease consultants can come in to provide the assistance you need.
At Nexus Towers, our expert consultants analyze the quality of your proposed initial lease or amendment based on 7 key factors along with a free lumpsum buyout valuation to empower Owners with the knowledge as to the true worth of their asset. Then, we offer you advice on how to best proceed. Additionally, our consultants work in tandem with qualified attorneys experienced in the Telecom Industry who can ensure that your lease agreement is free of any potential blind spots or problem areas. Finally, we work directly with you and wireless carriers to get the best possible deal for your next cell tower lease extension or renewal. This way, you can rest easy knowing that your lease will actually work in your favor for years to come.
Are you a property owner who has been approached by cell tower companies or 3rd parties acting on behalf carriers? Are you interested in renewing or extending your current cell tower lease? Are you interested in securing a lump sum for a buyout of your lease? Do you need help navigating an upcoming cell phone tower lease negotiation? If so, be sure to contact the experts at Nexus Towers today!