Several of our customers have received letters from AT&T that appear to be a new, aggressive campaign to reduce rents. While similar letters have been sent previously, the new letters are particularly aggressive.
The New Letter
The AT&T/Black Dot letter contains language that appears to indicate your site has been carefully reviewed and selected for relocation should you not comply with the demand to accept a rent reduction. An excerpt of this letter is below:
This language makes it sound like the site in question has been selected for relocation, without actually stating that has occurred.
The Twist
AT&T's latest letter include a new 'Site Appraisal Form' comparing your site to a 'cluster'.
This information presents a fairly dire picture of how your site is positioned in the market, appearing that a rent reduction is necessary.
What isn't clear is the sites included in the comparison cluster, nor the actual sites compared. This information is critical in understanding if the sites are comparable.
Perhaps more concerning than the request for a rent reduction are the requested changes to the lease. Some of the proposed language we have seen could have severe impacts on properties.
In our experience, many landlords will receive contact from AT&T or their agent Black Dot, regardless of the actual need for a rent reduction. We recommend cautious review of the entire request. Gunnerson Consulting frequently performs similar reviews on behalf of our customers. We are available to assist you if needed. Click here to contact us for a no-obligation conversation regarding your cell site.