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
