Termination Clause Traps: Protecting Your Tower Income When Carriers Consolidate
Understanding termination clause risk is an essential part of protecting the rental income from a cell tower lease. In this article, we’ll discuss reasons that agreements might be terminated and how Cell Site Advisors works to protect you over the long term and prevent sudden loss of rental income.
Protect Your Tower From Termination
Oftentimes, lease agreements use language that allows carriers to terminate cell tower lease agreements with very little notice, especially when mergers create redundant coverage or technology makes certain sites unnecessary. These redundant tower removal clauses, often buried deep in contracts, can blindside owners. Even if a tower seems vital today, the shifting needs of carriers mean sites are frequently decommissioned with little recourse for landlords. Cell Site Advisors has the experience and relationships to negotiate robust cell tower lease agreements with more protections in place to help avoid the loss of projected cell tower income for years to come.
Leverage Cell Tower Relocation Costs
Working with a cell tower lease brokerage, like Cell Site Advisors, is crucial to protecting your cell tower lease agreement from relocation. Our experts can help identify the true cost of relocating or terminating your cell site with market data to help raise any termination fees that are agreed to within the lease. These fees can help to offset the impact in the event of a sudden cancellation and, if high enough, can provide leverage for renegotiating an agreement instead of terminating it altogether.
Negotiate Your Value
One of the many benefits of working with a cell tower lease brokerage like Cell Site Advisors is that we have the skills and experience to negotiate detailed and robust cell tower lease agreements that are a “win-win” for all parties involved. We have the know-how to ask for specific language that maximizes the chance that your tower remains valuable, or that you’re paid well up until the very last possible moment if the tower is decommissioned. While most leases do offer a way for the carrier to terminate the lease, we’ll work to ensure that it can only happen under a specific set of industry-standard circumstances and that you’ll be fairly compensated if so.
As the telecommunications industry continues to evolve and carriers continue to merge and optimize their coverage, the chance of decommissioning a tower becomes more common. However, with Cell Site Advisors on your side and negotiating on your behalf, you’ll be better protected against the risk of termination clauses with better safeguards in place to protect the income from your cell tower lease. If you’re ready to work with us, we’re here! Please contact us to schedule a free consultation.
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.