Do you want to get the best cell tower lease rates?  Do you want to know the rent that you should be getting paid?  We will answer these – and many more important questions below.

If you have been contacted for a new lease, or if your current lease is expiring, you have one chance to get your rent right.  Perhaps you have been contacted by your tenant to provide consent for an equipment upgrade – this is another potential opportunity.  When you are considering a lease buyout (lease sale), the amount your are receiving on a monthly or annual basis will help determine your cell tower agreement’s total value.

There are several factors that must be considered in order to negotiate the best cell tower rent.

1. Is This A Brand New Lease Or A Change To An Existing Lease?

This question is crucial since after the cell site is built, it is more cost-prohibitive to remove.  It can often cost tens of thousands of dollars – and sometimes – even hundreds of thousands of dollars, to relocate a cell tower.  So, if the tower is already in existence, it provides you with more leverage to secure a higher rent rate.

However, if it is a brand new lease, that doesn’t mean that you have to take less.  There are just more options for the company looking to lease your land.  When anyone has more options, prices tend to decrease.

Think of the last time you where buying something and there was no shortage of supply.  The seller could not “jack” the prices up without the real chance you would go elsewhere to purchase the same thing.  The key is knowing what that correct cell tower lease rate is to prevent that from happening.

2. Is There A “Tenant-in-Tow”?

When a cell tower is built, sometimes the wireless carrier – such as T-Mobile – has entered into an agreement with a site acquisition company to build it.

The site acquisition company is “towing” the cell tower tenant immediately behind them.  The wireless tenant will put their equipment on the tower almost immediately after it is constructed.  This is important since the company building the tower will get income immediately from the tenant.  This results in them being able to negotiate higher rents since they are not worried about when they will get paid.  The tenants will often also negotiate directly with the property owner without using a site acquisition agent, which gives you the same leverage as this “tenant-in-tow” situation.

Alternatively, if the company building the cell tower does not have a “tenant-in-tow”, they will require a lower cell tower lease rate since it will take them additional time and expense.  They will be looking to keep their costs down and to also make more profit once they get a company like Verizon onto the tower.

3. What Is The Neighboring Competition?

Competition is everything when it comes to the rent amount that one can charge.

As discussed earlier, when people have more options, prices tend to decrease.  Are there adjacent landowners who have property similar to yours?  Are they willing to accept less than you are for the same lease?  If you have been approached for a new lease, these factors will weigh against you since no company wants to pay more, if they do not have to.  Especially if they have yet to spend a lot of money.

However, if you have an existing cell tower, these considerations are less important.  Why is that?  That’s because once the tower is built, they have to consider the cost to remove your site, and relocate it to another property, before they can achieve those better cell tower lease rates.

By engaging a cell tower lease expert like Tower Advantage, you can ensure that your rental rate is what it should be for your specific situation.

4. Are There Other Wireless Carriers On The Tower?

Does your tower have more than one telecommunication provider on it?  As you can expect, if so, the more income the tower will make.

Companies like Crown Castle and American Tower own and manage cell sites across the nation.  In those cases, they act as the tenant.  Any subtenants on the tower – such as AT&T and Verizon – would pay the tower operator – the tenant – monthly income for the right to put on their equipment.  Yet, most leases do not allow the landlord to share in any of that income.

As you can imagine, a tower with two wireless carriers is more valuable than one with one.  What if your tower has four other subtenants – not two?  Yep, the value goes up when it is time to negotiate your cell tower lease rate.

5. Are There Other Limitations For The Cell Tower Tenant (e.g., Construction, Zoning/Permitting)? 

Does your city, county, or local jurisdiction have limitations on new cell towers?

The more limitations, the more “hoops” a company has to “jump” through.  This can be very important if you have an existing site and it is “grandfathered in”.  This “grandfather” clause will often allow the cell tower tenant to avoid many of the restrictions imposed on them compared to building a new site.  Some of these restrictions can relate to the height of the tower, or the type and placement of the equipment.

However, if you do not know these crucial considerations, you are at a severe disadvantage.  We recently helped a landlord get 600% more rent than they were currently receiving by using our data and expertise.

Contact us today if you are negotiating a brand new lease, extending a lease, or if you just need some objective feedback.

Contact our experts at Tower Advantage for your
free consultation on negotiating cell tower lease rates.

(833) MY-TOWER
(833) 698-6937

info@toweradvantage.com

Who is Tower Ventures?

The company got its start in the 1990’s by building towers for wireless carriers and is based out of Memphis, Tennessee. Later, Tower Ventures began acquiring and operating towers. According to its website, the company owns over 400 towers.

If you have been contacted by Tower Ventures, our experts can provide you with a complimentary consultation so you have the best chance of success with your cell site transaction by a company who is your advocate.

Tower Ventures Works For Wireless Carriers

Since they began, the company has been working on the carrier-side of the transaction.

They often contract with AT&T to help them with rights of first refusals in leases. Due to their relationships with these large publicly-traded companies, it is not surprising who their allegiances are with. There is not anything wrong with that; but we prefer to work exclusively for the interests of landlords.

Tower Advantage Is Your Advocate

Unlike them, Tower Advantage works exclusively for landlords to protect your interests over any others. If you are considering a cell tower lease transaction and you have been contacted by Tower Ventures, we are here to help you with the expertise you need. We will be happy to provide you with with a free initial review along with our recommendations for your cell site lease transaction.

Tower Advantage takes pride in our success and are happy to provide you with signed testimonials from any of our past clients. We look forward to having you become part of the Tower Advantage family and are here for you anytime.

Whether you are considering a cell tower lease buyout, or anything else related to your cell site lease, we will provide you with an objective evaluation.

Contact us today if you have
been contacted by Tower Ventures.

(833) MY-TOWER
(833) 698-6937

info@toweradvantage.com

Have you been contacted by Tower Alliance?

Tower Alliance is an agent of the multi-billion dollar tower companies (e.g., American Tower). They try to get you to agree to a deal that is in their client’s best interest – not in yours! If you have been contacted by Tower Alliance, we recommend contacting Tower Advantage for your complimentary initial consultation. We are your advocate so you do not get taken advantage of.

Scare Tactics Are Common

Often times, these types of companies will use scare tactics in order to persuade landlords to accept unfavorable terms.

In one recent letter that one of our clients received (click here to see the letter), Tower Alliance claimed that the only remaining subtenant – Sprint – will soon be abandoning the site. This was not only untrue, there is no way Tower Alliance could know that information. Secondly, the landlord had more than one subtenant on the site – which we could verify.

However, most landlords who do not rely on the proper cell tower lease expert can be fooled into agreeing to something that they will regret.

Rent Reductions and Abatements

Sometimes, Tower Alliance will provide options that include rent reductions or rent abatements for landlords.

The reasoning they provide is that the tower is currently operating at a loss – or will soon be operating at a negative margin. As a result, they don’t want the sites to become a target for decommissioning. Yet, when landlords contact us who are in this situation, and we review their specific scenario, we find that almost all of the sites are clearly profitable.

We never recommend accepting a rent reduction or rent abatement, except in rare circumstances. We suggest contacting one of our experts who can better provide you with the knowledge you need in these situations.

How Does That Make Sense?

If you have had your cell tower lease for some time, you have likely heard from companies wanting to buy it. Tower Alliance is also in the business of purchasing wireless lease agreements.

Often times, a persuasion tactic is to convince you the site may not last the length of the lease term due to the tenant terminating the lease early. In fact, some cell tower leases have been decommissioned due to mergers. One example is when many Nextel sites were taken down after the company merged with Sprint. As a result, those landlords lost their rental income stream when the sites were terminated.

Yet, immediately after trying to convince you that your cell tower may not be “long for this world”, many of these companies will offer to purchase the lease for a large lump-sum amount. Yet, how does that make sense? Why would anyone want to purchase an asset that can cause the buyer to lose their investment?

The answer is that your cell tower lease is likely going to be there for a long time – and they are confident of that fact! Otherwise, they would not be interested in it.

Tower Advantage Is Your Advocate

Tower Advantage works exclusively for property owners so you can have the representation you deserve. Feel free to contact us anytime for your free initial consultation. We will be happy to provide you with our recommendations for your cell site lease.

We look forward to having you join a long list of satisfied clients that are glad that they had an expert in their corner.

Contact Tower Advantage today if you have
been contacted by Tower Alliance.

(833) MY-TOWER
(833) 698-6937

info@toweradvantage.com

Do you need some helpful expert advice with your T-Mobile cell tower lease or rooftop agreement? Have you been contacted about a new T-Mobile cell site lease, or to extend your existing T-Mobile agreement?

Tower Advantage is here to provide you with the answers you require to make the best decision for your particular situation.

The History of T-Mobile

T-Mobile is now the third largest wireless service provider in the United States with over 80 million customers. T-Mobile began as VoiceStream Wireless PCS in 1994, a subsidiary of Western Wireless Corporation. In 2001, Deutsche Telekom purchased the company and later renamed it T-Mobile USA, Inc.

AT&T previously tried to purchase T-Mobile in 2011, but AT&T later withdrew the offer. In 2013, T-Mobile merged with MetroPCS Communications, Inc. T-Mobile completed its $26 billion merger with Sprint in April 2020.

In addition, Crown Castle acquired the rights to approximately 7,200 towers of T-Mobile in 2012 for over $2 billion. As a result, some T-Mobile landlords are often contacted by agents of Crown Castle regarding their lease.

T-Mobile Cell Site Lease Provisions

A site lease agreement by T-Mobile normally has over 20 separate sections. Without the right help, landlords can create future problems for themselves by not obtaining the expertise of a cell tower consultant with the proper credentials.

The following are some provisions that are commonly found in a T-Mobile cell site lease:

(i) Option Period; (ii) Permitted Uses; (iii) Term; (iv) Rent; (v) Interference; (vi) Utility Services; (vii) Access; (viii) Termination; (ix) Casualty and Condemnation; (x) Default and Right to Cure; (xi) Taxes; (x) Insurance; and (xi) Assignment and Sublease. 

Although every one of the provisions in a cell site lease is important; unfortunately, we find that most property owners only focus on the rent and term. Even then, they do not possess the proper data and expertise to negotiate those sections effectively. Do not make that mistake – contact Tower Advantage for a complimentary initial consultation anytime.

Never Give Too Long Of An Option Period For Too Low Of $$$

Most new T-Mobile cell tower lease agreements have an option period where the rent will not commence until T-Mobile is satisfied that the property meets its needs. They will perform due diligence such as soil and environmental tests, make sure they can get the proper permits, obtain a survey, etc. In exchange, the company will pay an option fee for the “option” to exercise the lease.

However, we recommend only allowing a 12- to 18-month option period, including any renewals. In addition, we suggest not accepting anything less than $1,000 for an option fee, and preferably much more.

Do Not Give Too Much Land

Too many times we see property owners that give away more land to the cell tower tenant than is needed for the tenant’s use.

Since these leases are often in excess of 20 years, there can be unforeseen changes in which the owner may require additional land that T-Mobile will not want to give up. In addition, the landowner forgoes the opportunity to charge more if the cell tower tenant wants to expand its lease premises in the future.

Tower Advantage reviews your specific situation in detail to make sure you maximize your opportunity without giving up more than you have to.

Consider A Relocation Provision

As mentioned above, your – or a future owner’s – intentions for the property may change in the coming years.

Consequently, we recommend including a provision for the relocation of the access easement, and potentially, a provision to relocate the leased premises, if necessary. Tower Advantage provides recommendations for these, and other situations you may not have even considered. That way, you don’t have to experience the pitfalls that so many others have faced when they did not have the proper representation.

Get The Best Advice For Your T-Mobile Lease

Tower Advantage was founded by an attorney, and our experts have reviewed and negotiated thousands of leases. If you want to find out more about how we can help you achieve more income, while also protecting yourself for years to come, contact us anytime. We will be happy to not only provide you with signed testimonials from our our alumni of clients, we will provide you with contact information if you would like to discuss their experience with us.

Contact Tower Advantage today for your free consultation
regarding your T-Mobile cell site lease agreement.

(833) MY-TOWER
(833) 698-6937

info@toweradvantage.com

Have you been contacted by SBA Communications Corporation regarding a lease agreement?

SBA is a top Real Estate Investment Trusts (REITs) that is headquartered in Boca Raton, Florida. SBA Communications is the third largest tower company, behind only American Tower and Crown Castle. In just the first quarter of 2020, the company earned $322.4 million in profit on its site leasing operations in the United States.

Here a 3 Tips For Your SBA Cell Tower Lease Agreement

SBA has been actively contacting landlords across the country to extend its leases, and to purchase leases from property owners. The company also builds towers so you may have been contacted for a new lease on your property. Here are 3 tips to help you with your SBA Communications cell tower lease agreement:

1. Rights of First Refusal (ROFRs) Can Lower The Value of Your SBA Agreement

When negotiating a cell tower agreement, SBA will request a right of first refusal (ROFR). These ROFRs can be placed in a lease agreement or in a lease buyout agreement.

“Last Mover” Advantage

In a lease, a ROFR allows SBA Communications to “sit back” and simply wait to match an offer to purchase your lease. By doing so, SBA does not have to provide a competitive offer until you show them the largest offer that you will accept. This is known as the “last mover” advantage since SBA gets the “last move” and the potential buyer has no recourse to prevent it.

In a lease without a ROFR, SBA would not know the highest offer that you are willing to accept. Consequently, that would cause their offers to increase since most cell tower tenants do not want to “lose” the lease to another buyer. There are a variety of reasons SBA does not want to “give up” the lease, including being subject to rent increases far above what landlords would typically request when the lease expires, or if SBA requires an amendment to the lease.

Without an Expert, You Will Get Lower Offers With A ROFR

Even with a ROFR, the experts at Tower Advantage can still get you the highest price and the best terms using our experience and relationships in the industry. If you are selling your lease and you already have a ROFR, we can provide you with options that you would not otherwise have.

Since we have been in the industry for two decades, we know the “tricks-of-the-trade” that will still maximize your particular lease opportunity if you have a ROFR. Contact Tower Advantage today for your complimentary, no-hassle consultation regarding your SBA Communications agreement.

2. Negotiate More Than Simply The $$$ In Your Lease Buyout 

The normal SBA lease agreement has over 30 separate sections. The typical SBA cell tower lease buyout agreement has approximately 25 different sections. As you can imagine, only a few of them focus on the money you will receive.

What Can Be Negotiated In Your Agreement?

As with any contract, you should always protect your interests – both short- and long-term. It should never simply be about the money you will be getting paid. Unfortunately, most landlords overlook this issue and fail to negotiate key provisions for the fear they will “lose the deal”.

Some common provisions that we always recommend revising include: taxes, maintenance, and improvements. We also recommend adding other language that, although not initially included in the agreement, SBA will accept. For more information on how we can provide you with valuable input, please feel free to contact us today.

What Is The Correct Language To Include?

Several provisions that, if not included, will be considered “deal breakers” for SBA. Again, we understand what those provisions are and can provide you with the necessary feedback you need. Also, we can provide alternate language that will help your maximize your particular situation.

Whether you are considering a brand new SBA lease, a lease extension, or a lease buyout, we have helped clients who have been in your situation. After better understanding what your goals are, we can then tailor a customized strategy to advocate specifically towards that result.

3. Rely On A Cell Tower Expert Who Also Has Legal Expertise To Negotiate SBA Agreements

Although there are many consultants who have telecommunication experience, most do not possess the required real estate and legal expertise to adequately represent landlords.

Require More Than A Typical Consultant

Tower Advantage represents landlords using its vast experience which includes more than just cell site expertise. Founded by attorney, Shival S. Bushan, Esq., our firm brings superior knowledge and advocacy to our clients. Unfortunately, most consultants do not possess the required legal skill to negotiate contracts, so they cannot provide complete representation.

If you are looking for a cell tower advisor that will exceed the services of other consultants, contact Tower Advantage today to learn more about how we can help you.

10 Factors To Consider When Hiring A Cell Tower Consultant

At a minimum, we recommend these 10 Factors To Consider When Hiring A Cell Tower Consultant. From requiring an expert negotiator with legal experience, to asking for signed client references, we suggest that you do not “settle” when it comes to hiring an advocate.

Our experts have brokered over $50,000,000 in lease buyouts, while providing an additional $75,000,000 in total lease value to our alumni of clients. Whether you are considering selling your lease, extending your lease, or any other cell site lease service, Tower Advantage is here for you whenever you need us.

Contact Tower Advantage for your free consultation regarding
your SBA Communications cell tower lease agreement.

(833) MY-TOWER
(833) 698-6937

info@toweradvantage.com

Have you been contacted by TowerPoint Capital?

TowerPoint Capital is a lease acquisition company that also has done contract work for some of the major tower companies, such as Crown Castle and American Tower. One aspect of TowerPoint’s business model is to purchase leases from landlords at the greatest possible profit margin for the company.

In the past, the company was hired to negotiate lease extensions for the lowest rates achievable. In either case, you can be sure TowerPoint is trying to maximize everyone’s profit – except for yours! Similar to BlackDot Wireless, its fee is typically related to the amount of profit it achieves for both its clients and investors.

Don’t agree to anything without getting the necessary representation from a cell tower consultant with the proper credentials. We suggest that you contact us to review your lease and TowerPoint proposal so we can provide you with our expert recommendation. The founder of our firm is an attorney and cell tower lease expert who has helped clients across the country.

The experts at Tower Advantage have reviewed hundreds of these offers and will provide you with the advice you deserve. We are very familiar with the methods that TowerPoint Capital uses to persuade landlords.

Don’t be fooled by dealing with a company that is not representing your side in the negotiation! We work exclusively for property owners – like you – to provide the expertise necessary to maximize your cell tower opportunity.

If you are considering selling your lease, feel free to review Your Complete Guide to Cell Tower Lease Buyouts. Otherwise, if you are considering extending your cell site lease, learn these 6 Important Negotiation “Facts”.

Whatever your situation, we are here to provide you with the information you need.

Contact Tower Advantage today for your free consultation
regarding your proposal from TowerPoint Capital.

(833) MY-TOWER
(833) 698-6937

info@toweradvantage.com