Have you been approached for a Verizon cell tower lease agreement and need some helpful advice? Do you need the proper legal and telecommunications expertise to guide you in the right direction? Or, do you simply want to know more about a Verizon cell site agreement?
Feel free to contact Tower Advantage today for your complimentary initial consultation. Our founder is an attorney, and an expert in the cell site industry, to ensure that you get the answers you need.
Some Basic History on Verizon
Verizon Communications is the second largest wireless service provider in the United States behind AT&T. The company’s corporate headquarters are located in New York City, and their operational headquarters are located in New Jersey. Founded in 2000, Verizon gained popularity in the U.S. for its “Can You Hear Me Now?” advertisements.
In 2019, its revenue exceeded $131 billion dollars. To put that in perspective, if you stacked $1 bills on top of each other, it would reach over 10,000 miles. That’s is approximately three-and-a-half times as long as the distance from Los Angeles to New York.
As expected, they use experts in all aspects of their business to maximize their profit, including when negotiating their cell site leases.
Verizon’s Site Acquisition Agent is Working For Them – Not You
Site acquisition agents are paid to locate potential properties for the telecommunication companies that hire them. As part of their compensation, they get bonuses for the lower the rent and the better the terms for their clients.
Consequently, agents will not give you any information that will benefit you in the negotiation. Moreover, they often try to get you to move quickly or risk losing the deal. Do not fall for that tactic since you need to make sure you are not “operating in the dark”.
Feel free to contact Tower Advantage for your free initial consultation, including Verizon cell tower lease rates. Also, here are 10 Factors To Consider When Hiring a Cell Tower Lease Consultant.
There Are Two Basic Types of Verizon Cell Tower Lease Agreements
There are two basic kinds of agreements, depending on the type of property. For land, Verizon will normally use an Option and Land Lease Agreement. For rooftops, the company will use a Building and Rooftop Lease Agreement.
Option and Land Lease Agreement
An option contract is one that gives Verizon the choice on whether to commence the lease agreement. Only if they “exercise the option” is when rent must be paid. In exchange for this right to “hold” the land for a specific period of time, Verizon should pay you an option fee, but the amounts are almost always lower without the proper representation. We recommend negotiating the option fee to be the same amount of the starting rent.
Normally, option periods will be six months to 12 months. Most of the time, Verizon will include an automatic option renewal period for the same amount of time. If they use a renewal option, they should pay an additional option renewal payment. Note, all of these time periods and payment amounts can be negotiated – and should be negotiated to maximize your rights.
The Option and Land Lease Agreements and the Building Rooftop Lease Agreements normally have over 30 separate sections each. Remember, these were written for the tenant’s benefit – not yours – so we recommend getting the proper cell tower consultant – like Tower Advantage – to guide you through all of the legalese.
Building and Rooftop Lease Agreement
As mentioned above, this type of agreement is very similar. The main difference involves the fact that you own the “tower” – which is the building and rooftop – not them.
In a land lease agreement, normally, the cell site tenant owns the tower structure. In that case, Verizon has more leverage when it comes to negotiating any sublease provision because they are not necessarily leasing any additional land from you. Yet, in a building and rooftop lease, the landlord owns the structure so the landlord has more leverage to request, and receive this type of additional income.
Also, any modifications to the structure have the potential to cause damage to – or interference with – the guests, residents, businesses, and/or tenants in the building. Consequently, those associated lease provisions should be “air-tight” when dealing with these possible issues. Now, let’s address the rent.
What is Fair Rent For A Verizon Cell Tower Lease Agreement?
Verizon is a billion-dollar telecommunication company for many reasons. One of those reasons is because their experts have secured great lease rates with landlords across the country. As a result, Verizon can generate more revenue per tower they own and operate.
Fair Rent
Verizon knows that “fair rent” is a subjective term. If a landlord is not earning anything for their rooftop, and they are unlikely to rent it out to any tenant other than a telecommunication company, then fair rent could be any number above zero. Similarly, if a property owner is not using the land that Verizon is looking to lease, or the land is generating less than the – let’s use $750 per month – they are offering, then what is the best way to determine fair rent? Below. we will provide you with the important variable that will lead to the answer.
Factors To Consider
The answer is by using the experience and data of a cell tower lease expert that has the information necessary to calculate it for you. There are thousands of cell sites across the nation, and cell towers right next to each other often pay very different amounts. The reason can vary, but in addition to who the tenant is, other factors include:
– how much area is being leased?
– what type of tower is being built?
– what equipment is being used?
– how long is the lease?
– are there any subtenants?
We have seen rents that pay a few hundred dollars per year, to over $15,000 per month. Rooftops normally pay more than land leases, but that is not necessarily always the case depending on the factors listed above.
Tower Advantage maintains one of the largest databases of cell tower lease rates all around the country. We can use that vast data, along with our expertise negotiating hundreds of leases relating to the factors above, in order to provide you with the best opportunity for success with your Verizon cell site lease agreement.
Contact Tower Advantage today and we can help you get the most rent for your particular situation.
Verizon Cell Site Lease Agreements Typically Have Over 35 Sections and Are Over 15 Pages Long
From indemnification provisions, to rights of first refusal – from removal and restoration clauses, to tax provisions – Verizon cell tower lease agreements are full of language that needs to be addressed or it can potentially cause you headaches in the future.
Based on our experience negotiating these agreements, we recommend engaging a cell tower expert who can properly address these issues so you are properly protected. Every single provision in the lease was drafted by an attorney for the benefit of Verizon, so unless you have a consultant with the required legal background – like Tower Advantage – to tackle these on your behalf, you are at a severe disadvantage.
Many consultants may claim to have the proper expertise, but when you ask them about their legal education or credentials, they fall short. Unfortunately, one of the biggest mistakes landlords make is focusing on the rent and disregarding the other 30+ sections of the lease than can cause problems with their property for decades.
Join our alumni of clients who were happy they contacted Tower Advantage for their complimentary, no-hassle consultation.
Contact Tower Advantage today for your free consultation
regarding your Verizon cell site lease agreement.
(833) MY-TOWER
(833) 698-6937
