Cell Tower Lease FAQs

Frequently Asked Questions (FAQs) Regarding Your Cell Tower Lease Agreement

Please feel free to either search the FAQs by searching for a particular subject in the search bar to the right, or simply scroll below. These are some common frequently asked questions we receive regarding cell tower lease agreements. Please feel free to contact us for more information.

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Q: What do I do when I have been contacted to put up a new cell tower on my property?

A:

Tower Advantage has helped hundreds of landlords maneuver through the process of getting a new cell tower lease on their property.  Typically, the potential tenant will give you all sorts of reasons to hurry and sign a cell tower lease as soon as possible, or at least agree to the business terms without delay.  We recommend never rushing into a long-term contract without the proper cell tower expertise, as there are many pitfalls that can diminish your future rights. For more information on negotiating a new cell tower lease, feel free to contact one of our experts today for a complimentary consultation.

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Q: What is a small cell?

A:

There are three types of small cells including femtocells, picocells, and microcells.  Femtocells are router-like devices and are usually placed in residences and small businesses.  Picocells are usually installed in shopping malls and metro stations as they have more coverage and can handle more users.  Microcells are typically installed on traffic lights, signs, and near large events as they have widest coverage and user capacity of the small cells. Please click on the following link if you want to learn more about different types of cell towers.

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Q: What happens to my cell tower lease if there is a merger?

A:

When wireless carriers merge, there is often overlap and redundancy in the new combined network, which means not all cell tower sites will be needed. Some historic situations like this include Sprint-Nextel, and AT&T-Cricket. Landlords that once thought their sites were going to last for decades into the future suddenly received notice that their cell tower lease was being terminated. Landlords have various options prior to that time so contact a cell tower advocate – like Tower Advantage – to provide you with alternatives.

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Q: Should I agree to my cell tower tenant’s request for an upgrade?

A:

Not without an advocate on your side to review the request and provide you with feedback. Any request to upgrade a cell tower will be governed by the cell tower lease, but sometimes there are “gray” areas that need to be better explained by an industry expert. Tower Advantage has the knowledge and experience advising hundreds of clients when they have received a request for an upgrade by their tenant.

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Q: What does the T-Mobile and Sprint merger mean for my lease?

A:

The merger of T-Mobile and Sprint has been approved resulting in a company that has over 126 million customers. It is now the third largest service provider with AT&T’s at #1 with 141 million customers and Verizon at #2 with 150 million.  By combining, T-Mobile now is in a better position to take on the top two carriers, thereby lowering prices.

As a result of the merger, and as experience shows us, some Sprint leases – and fewer T-Mobile leases – will be decommissioned for network redundancy. To find out more about how this merger effects your particular situation, feel free to contact us for a free consultation.

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Q: Why am I constantly getting calls to sell my lease?

A:

The companies that are calling you are typically trying to purchase your lease under value and make a profit by “flipping it” later at your expense. It is a lucrative business and so these companies continue to call and give you every reason why your cell tower lease is going away – but strangely enough, they still want to buy it. As an exclusive landlord representative, we can solicit the largest sales prices due to a variety of proprietary methods, so if you are looking to sell your lease – feel free to contact us and we can help you explore your options.

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Q: What is a right of first refusal (ROFR)?

A:

A right of first refusal (ROFR) is a contractual right that gives the holder – usually the cell tower tenant – the right to match the terms of any third-party offer to purchase the lease and/or property. This provision can lower the value of the lease and the property for a variety of reasons, including what is known as the “last-mover advantage”. If you have been presented a proposal that includes a ROFR, you should contact an expert in the telecommunication industry, such as Tower Advantage, to better evaluate your options.

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Q: What cell tower rent should I be collecting?

A:

Cell tower rent is based on a variety of factors, as no two sites are the same. Some examples that affect the rent are the type of cell site, the equipment that is being used, the location of the site, and how much traffic the cell tower is handling. Contact Tower Advantage to better understand how to maximize your rent.

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Q: How do I get another wireless tenant on my cell tower?

A:

All major wireless carriers have different processes for entertaining potential properties that may be suitable for a cell tower. Tower Advantage has put together a comprehensive service to now help landlords market their property to additional carriers. For more information, please click here.

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Q: What is the value of my cell tower lease?

A:

There are many factors that can affect the value of your cell tower lease such as your scheduled rent, the size of the leased premises, and the location of the property – just to name a few. If you are considering selling your lease, please make sure to review Your Complete Guide to a Cell Tower Lease Buyout. Make sure you are not being short-changed, contact Tower Advantage for an expert opinion.

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Q: Will cell towers become obsolete?

A:

That is a million-dollar question. As we know, technology is ever-changing, but this is the fourth decade that cell towers have been operational. Based on our expertise, the better question is whether your specific cell tower will become obsolete – not because your cell tower tenant is trying to convince you in order to get you to “ink” a deal, but based on actual considerations that Tower Advantage will be happy to discuss with you.

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Q: Who is Md7?

A:

Md7 is a company that provides services for the multi-billion-dollar telecommunication companies to help them increase their profit. They are also known as a lease optimization company – but they are optimizing the lease for your tenant – not you! Our clients have requested expert consultation when Md7 has requested a rent reduction in exchange for a “guarantee”. If you have received any correspondence from Md7, please contact Tower Advantage for a complimentary consultation to discuss your options.

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Q: Who is The Lyle Company?

A:

The Lyle Company is a lease optimization company whose clients include the multi-billion-dollar tower companies. They are contracted to contact landlords and secure the best deal for their clients – not you! Many of our clients have told us the offers they have seen from these companies make them ask us “what is the catch?” If you do not have an expert like Tower Advantage on your side to evaluate the proposal, you can bet you are leaving many of your rights and dollars “on the table”.

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Q: Who is Black Dot?

A:

Black Dot is a lease optimization company whose clients include the multi-billion-dollar wireless carriers.  They are engaged to provide those companies with the maximum profit for your particular lease.  Whether it is an offer for a lease extension or a lease buyout, you can rest assured they are not working in your best interest, but rather their clients.  Don’t agree to anything without a wireless expert on your side – they have one, shouldn’t you?

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Q: Who is TowerPoint Capital?

A:

TowerPoint Capital provides services for the Fortune 500 telecommunication companies in order to maximize their return.  They are contracted to offer lease extensions and lease buyouts, and often use the word “partnership” in order to convince landlords to enter into a transaction.  Do not be fooled by companies working for “the other side” – find out how Tower Advantage can ensure your interests are protected.

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Q: Will cell towers become obsolete?

A:

That is a million-dollar question.  As we know, technology is ever-changing, but this is the fourth decade that cell towers have been operational.  Based on our expertise, the better question is whether your specific cell tower will become obsolete – not because your cell tower tenant is trying to convince you in order to get you to “ink” a deal, but based on actual considerations that Tower Advantage will be happy to discuss with you.

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Q: Why would I agree to a rent reduction?

A:

Lease optimization companies, such as Md7 and Black Dot, are often used by their Fortune 500 clients to contact landlords to persuade them to lower the rent. Often times it works because the threat of losing the site helps convince landlords to take a “guarantee” for a relatively short number of years. Don’t take a rent reduction without contacting an expert, such as Tower Advantage, who will provide you all of your options.

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Q: What is a site acquisition company?

A:

A site acquisition company is contracted by cell tower companies and major wireless carriers to secure a new cell tower lease with a landlord. There are many things these companies will tell landlords, all to get them to sign a lease as quickly as possible and for the lowest amount possible – or fear them going somewhere else. You can rest assured that you will not lose the opportunity by contacting Tower Advantage for an expert opinion.

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Q: Do you provide a rooftop cell site audit?

A:

We are happy to review your particular situation to ensure that your wireless tenants are honoring their lease with you. We have helped property owners across the nation keep their tenants “honest”, and have collected tens of thousands of dollars due to both breaches by the wireless carriers. For more help with your rooftop cell site lease, please contact us today.

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Q: Why is my cell tower tenant asking for such a long-term lease?

A:

The longer the lease, the less uncertainty for a cell tower tenant. That is because they do not have to worry about landlords terminating the lease which can cause the cell tower tenant to incur more expenses for potential relocation, increased future rent, etc. Tower Advantage can help you whether you are negotiating a lease for a brand new cell tower, or you are considering a lease extension. After your free consultation, one of our experts will be happy to negotiate the best terms for you based on a complete review of your particular cell tower lease situation.

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Q: What are the current cell tower lease rates?

A:

Cell tower lease rates are based on a variety of factors and there are no simple averages. Some examples that affect the lease rate are the capacity and coverage of the site, where the site is located, and the competition and alternatives available. The experts at Tower Advantage have negotiated hundreds – if not thousands – of leases and have access to comparable rates based on your specific scenario.

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Q: How do I contact my cell tower tenant?

A:

There many cell tower tenants so for more information, please see below or feel free to contact us for more information.

AT&T: (877) 231-5447 / releaseadmin@att.comhttps://landlordportal.att.com/home/

Verizon: (866) 862-4404 / https://www.verizonwireless.com/biz/real-estate/

T-Mobile/Sprint: (877) 373-0093 or (800) 357-7641 / PropertyManagement@T-Mobile.com / https://howmobileworks.com/contact-property-management/ / https://howmobileworks.com/landlord-support/

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Q: Should I extend/renew my cell tower lease?

A:

Most leases were written decades ago and have provisions that are not current, are one-sided, and need to be updated. In addition, although sometimes it is difficult to say “no” to what may seem like relatively easy money, by not having a cell tower expert who is representing your rights take a closer look, you may leave tens, or even hundreds of thousands of dollars “on the table” – not to mention, you may put yourself into a position that could have been easily avoided. Find out the 6 Important Negotiation “Facts” that you need to know regarding a cell tower lease extension.

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Q: What does revenue share mean?

A:

Revenue share is a term used to describe when a portion of the total revenue related to a new cell tower subtenant is shared between the landlord and tenant. A revenue share is not common in a majority of cell tower leases due to a variety of factors. For an in-depth review of your opportunity for a potential revenue share, contact Tower Advantage today.

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Q: What effect does a cell tower lease or cell tower lease buyout have on the value of my property?

A:

That is a tricky question – as the answer is simply:  it depends. As one can imagine, any increase in income on a property can usually increase its value. However, you have to ask key questions like what is the highest and best use of the property where the cell tower is located, or will be located? Are there provisions in the lease that allow you to not be “held hostage” by the tenant over the long-term? We will be happy to explore these and other questions that will better answer your question. For more information, please review our articles on the 4 Advantages and Disadvantages of a Cell Tower Lease and Your Complete Guide to a Cell Tower Lease Buyout.

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Q: How do I get a cell tower on my property?

A:

A cell tower lease agreement can provide property owners with the both better cell service, and a valuable income stream for decades into the future. Tower Advantage has put together a comprehensive service to now help landlords market their property to the companies looking to build them. For more information, please click here.

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