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    Why Tower Landlords Agree to Bad Leases

    September 29, 2020

    Why would tower landlords agree to bad leases?

    Here’s the explanation.

    According to 2018 censuses, cell carriers (Verizon, T-Mobile, AT&T and Sprint) spent an average of $1,900 to $1,300 per month’s-rent on individual sites. With an estimated total of more than 349,000 cell sites during that year, the related payouts run high. They also keep accelerating. 

    Big business carriers are intent on reversing this rent trend. They attempt to do it by applying corporate ingenuity that vulnerable property owners fall prey to. Appointing vendors that offer specialized services in negotiating reduced rent, they often succeed. 

    Md7, Blvckdot, Landlords and Bad Leases

    Md7, Blackdot and other professional vendors represent the cell phone and Internet carriers. These vendors use shrewd, aggressive methods. 

    Official-looking letters sent to the property owner sound very convincing. They often delude landlords into believing there is no alternative than accepting unfavorable terms to their lease.

    They do this by: 

    • boldly displaying the carrier’s logo
    • using sophisticated, difficult-to-understand wording 
    • depicting scenarios that may not even exist
    • including mention of considered relocation site going for fraction of current rent rate 

    These letters advise the landlord of ‘modifications, ‘reevaluations’, ‘developments’ and ‘criteria for cellular site retention’. Additionally, they force the landlord to select between two unreasonable options, like:

    1. significantly reduced monthly rent for a number of years of guaranteed occupancy

      or
    2. an undesirable immediate lump sum opportunity for several years-worth of cell tower occupancy.

    Fighting for the Landowner: A Nexus Tower Pledge

    Nexus Towers has more than 40 years of combined real estate and cell tower infrastructure experience. This helps us protect susceptible landlords from being wrongly coerced into adverse lease agreements.

    As objective, independent consultants, we are on your side. What’s more, we are determined to protect you and prevent you from making costly mistakes. We understand what you are up against. We are equipped with professional knowhow. And we can negotiate and fight for you to secure the highest possible value for your lease. 

    All you need to do is reach out to us.

    Nexus Towers offers transparent guidance and professional services. We give the leverage needed to get the highest value from your wireless assets. Our supportive services include: PIGEON PATROL (oversight and management), LEASE CONSULTING, LEASE EVALUATION and LUMP SUM LEASE BUYOUTS. 

    Summary: If you are a landlord in a lease with a cell tower company, be prepared. You’ll probably get a threatening letter designed to make you reduce rent. Nexus Towers can protect you from the onslaught. Take the first step. Reach out to Nexus Towers to advocate for you and get the most out of your assets.

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