The Hidden Risks in Long-Term Cell Tower Leases (and How to Protect Your Interests)
If you’re currently in or considering entering a long-term cell tower lease, there are a few things you should know! While cell tower leases can be hugely beneficial, offering extra income and security, there are many things to look out for that the average person might not consider when presented with what seems like a good offer. At Cell Site Advisors, our cell tower lease brokerage services exist to ensure that you, the land or structure owner, receive optimal benefits from entering into a cell tower lease agreement. Let’s talk about a few things we help our clients look out for.
Vague Lease Terms and Lost Income Potential
Cell tower companies profit from vague contract language that allows them to move the goalposts, benefit from loopholes, and profit from landowners' lack of expertise. While there are many ways that lost revenue can occur, a few common ways include unclear terms about the land area being leased. If there aren’t specific terms of square footage or what utilities can be used, you might find yourself with companies that make use of more land than intended. In cases where cell carriers allow other telecom companies to use (co-locate) the tower on your land, if a percentage of that revenue is not determined in the contract through the lease agreement, that’s lost income as well. During the initial negotiation, or renegotiation process, the Cell Site Advisors team makes sure that these terms are clearly defined for your protection.
Consider Property Values and Limited Land Use
While having a cell tower on the property can be lucrative while the property is yours, if you decide you’d like to sell or rent the property, having an existing cell tower can impact the market value of your land if you don’t have expert assistance, like what we offer at Cell Site Advisors, negotiating the value. In some cases, selling might be prohibited in the lease if you don’t know how to negotiate against it. In other cases, you may run into issues with your ability to further develop the property surrounding the tower. Our goal when brokering a cell tower lease is to make sure you understand the agreement you’re entering into and negotiate the terms in a way that leaves you with options for future land use and for maximizing the value of your property.
Appropriate Legal Representation
Legal review is part of our three-step process for a reason. If you work with a lawyer who is not experienced in the intricacies and interpretation of the terms of a cell tower lease agreement, you may find yourself in a cell tower lease that benefits the cell tower company much more than it benefits you. Our team at Cell Site Advisors is incredibly proud of our 20+ years of experience in the telecommunications industry. Not only are we able to leverage our industry expertise and relationships to get the deal done, but our legal team is well-versed in the language to look for and all the pitfalls that might slip past a legal team who is unfamiliar with this industry.
If you’re already in a lease and have begun learning a few of these things the hard way, don’t fret! At Cell Site Advisors, we offer cell tower lease negotiation services and may be able to help you renegotiate the terms of your existing lease and get you more favorable terms! If you’re currently being approached by a company, do your future self a favor and let our experienced team guide you through the cell tower lease process.
Ready to see how working with Cell Site Advisors can best benefit you? Schedule a free consultation with us today!
About the Author
Ted Unkel is a principal at Cell Site Advisors, which specializes in negotiating telecom leases and transactions for property owners. He has more than 20 years of experience in the telecom industry, mostly working in nationwide negotiations on behalf of Crown Castle, a real estate investment trust that works with landowners and property owners on cell-tower leases and real estate infrastructure.