Cell Tower Lease Buyouts
If you have a cell tower lease or a rooftop antenna site lease on your property, you have been contacted about selling the cell tower lease. For property owners who have decided that a cell tower lease buyout is right for them, the amount of money received is only part of this transaction.
There are many different factors that need to be incorporated into any cell tower lease buyout transaction. The company buying the lease will require a long term agreement that will impact the property owners ability to use portions of the property. It is critical to understand what the long term impacts are when transferring a lease.
Some considerations are:
- What are the access rights/requirements?
- Are additional rights needed beyond those granted in the lease?
- Is the price fair?
- Are there different tax implications based on the structure of the purchase?
- If additional tenants or rent are promised as a part of the offer, when will that income be realized?
- Is it even probable that the buyer will add tenants?
- What happens if the property is redeveloped?
- If there is a problem with the tenants after the sale is completed, what options are available to the property owner to resolve the problem?
- Rooftop sites add additional layers of complexity, and each site is different.
Gunnerson Consulting has experience with all aspects of the lease buyout market. because we do not buy leases, we can help you make sense of lease buyout offers and can explain the differences between the many options available, including lease assignments, sale of an easement, non-recourse loans, or pre-paid leases. As an added benefit, every customer we have assisted in a lease buyout transaction has seen a significant increase in the lease buyout price!
By looking at your goals, and developing a solution that is specific to your needs, GCCSS provides the best solution - custom tailored to you. Our method of handling lease buyouts has been proven to increase the overall benefit to customers who decide to sell their wireless leases. If you are contemplating a cell tower or antenna site lease buyout, it is well worth your time to contact us for a review of the situation.
Gunnerson Consulting's Article in SC Lawyer Magazine
Gunnerson Consulting recently published an article in South Carolina Lawyer magazine entitled:
My Client Was Approached about Placing a Cell Tower (or Rooftop Antenna) on its Property - What Should I Do?
Take this crash course about the communications industry to enhance your ability to effectively represent your client.
Cell Tower Lease Rates
Many cell tower or rooftop antenna site landlords have questions about cell tower lease rates. With standard real estate rentals, there are many resources available to landlords to compare with surrounding sites and make sure your rental rates are fair. This is not the case with cell tower lease rates or rooftop lease rates.
Cell tower lease rates vary widely. The key factors that determine the rent paid by a cell tower company or a wireless carrier for a cell tower or rooftop antenna site is determined largely by two factors:
- How important the location is to the network.
- Who negotiates the terms of the lease.
When a cell tower or rooftop antenna site is installed, multiple locations are often reviewed. Threats by the company to "take the tower across the street" may be valid. They may also be a bluff.
In lease renewal situations, the approach changes dramatically and, if handled properly, the landlord can have much more control in the outcome of future cell tower lease rates than they are led to believe.
Without knowledge of what the wireless carriers are looking for, and what standard terms are, most property owners must guess to determine what "fair" terms are.
Gunnerson Consulting has experience with thousands of wireless leases across the United States, and on four continents. We maintain one of the largest databases of its kind regarding current cell sites and market rent. Additionally, we know what is required to make a cell site viable.
If you have questions about cell site lease rates or rooftop lease rates, contact us today for a free initial consultation.
The wireless carriers would never consider changing cell tower lease rates without reviewing surrounding sites, neither should you.
Cell Tower Lease Rates
Rooftop Antenna Site Upgrades
Rooftop cell sites (or rooftop antenna sites) tend to evolve over time. What may start out as several antennas initially can expand to 15 antenna panels (each containing multiple cellular antennas), and a plethora of other equipment. In several of the most recent upgrades we have seen, close to 1,000 pounds of equipment has been added to rooftop cell sites during a "minor" upgrade.
While some buildings are made to support these types of loads, many are not.
Of additional concern, many rooftop cell site leases contain verbiage that grant the tenant the right to add equipment and loading without the property owner's permission. Other leases only allows the property owner as little as 5 days to review the tenant's plans before their approval is automatically deemed granted by the lease!
Rooftop cell sites can be a great source of revenue from a portion of the building that otherwise would not generate revenue. This is contingent on proper installation and proper management of the cell site over time.
Rooftop cell site upgrades should be an opportunity for both landlord and tenant to assess the tenant's use of the property. The property owner should be able to determine if the use of the property has exceeded what was initially anticipated in the lease, and the tenants should assess whether they have outgrown the space granted by the lease. Square footage is only one consideration, loading and traffic are also important.
Gunnerson Consulting is well versed in assisting in the creation of lease documentation that allows property owners to actively manage rooftop cell sites. Additionally, we have the expertise to assist property owners in the auditing and management of rooftop cell sites. Contact us today to discuss your situation.
Joan's Cell Tower Lease Renewal Problem
Joan leases space on her property for a cell tower. The tenant has requested a lease extension - with some modifications. Who can she turn to for help?
Many property owners have recently been approached by their wireless tenants to extend leases. While any extension or modification to the lease should be done to the mutual benefit of the both the property owner and the tenant, many lease extensions are not implemented this way. Most property owners are not familiar with what "normal" is during the cell tower lease renewal process.
Gunnerson Consulting regularly reviews cell tower and communication site lease renewals. Click here to contact us and see what Gunnerson Consulting can do to assist you with your cell tower lease renewal.
Bill's Rooftop Antenna Problem
Bill owns a building with ccommunications antennas on the rooftop. Bill doesn't specialize in rooftop antennas, who can he turn to for help?
Most property owners with rooftop-mounted antennas are not specialists in this arena. In many cases, property owners trust their wireless tenants to manage and upgrade the site without oversight - simply because they or their property managers do not have the expertise to do so. With proper, active involvement, rooftop antennas can be a great source of revenue. Without active involvement, headaches can develop. Click here to contact us for information on how Gunnerson Consulting can assist you with your rooftop antenna site tenants.
Cell Tower Lease Extensions
If your cell tower lease is owned or managed by a cell tower company, most likely you have been approached about extending your cell tower lease. While the offer of extending your cell tower lease may sound appealing, you must consider all the proposed terms in the lease extension to determine the full impact to your bottom line. We recently saw one example of of a cell tower lease extension where, in exchange for a $3,500.00 signing bonus now, the property owner lost an opportunity to collect several thousand dollars a month starting in several years.
Some cell tower companies use lease extensions as an opportunity to add additional rights to their existing cell tower lease. In lease extensions you will see items such as a Right of First Refusal or options to expand lease area. You may also see the removal of key terms contained in your cell tower lease such as the removal of provisions requiring your consent to the addition of new subtenants, or the removal of your right to approve of future construction construction. We have also seen lease extensions used as a way to correct actions that may have been performed by tenants (such as, modifications made without the owner's permission) that were not noticed by the property owner.
Most property owners are not familiar enough with the cell tower industry to know when they may be making a decision that will cost them tens, or hundreds of thousands of dollars. Contact us today with any questions you may have regarding a lease extension on your cell tower or antenna site lease.