Lease Expirations and Extensions

Here’s what we can do for you if you’re dealing with an expiring cell tower lease

• Review the Expiring Lease We will evaluate the terms and language of your current lease in consideration of industry trends to determine the probability that your lease will be extended or expanded upon vs. the likelihood of its termination. We will also explain how each of these scenarios might affect you in both the short and long term.
• Audit the Cell Site and Lease We will review the tower or site based on “uniqueness” metrics to determine the feasibility and costs associated with possible site relocation vs. possible site termination. This analysis will include an investigation of zoning regulations, tenants, usage, and expected replacement costs vs. profit flow to the cell tower owner. The cell tower owner does a similar review when faced with higher lease rates at the extension of the lease to determine whether or not it would be more cost-effective to extend the lease or to enter a new lease with another property owner and build a new tower.
• Examine Other Comparable Lease Expirations We look at what other landowners were capable of negotiating when they extended their leases. This isn't just comparing to other lease rates currently received by other landowners in the area- but what other landowners with similarly situated towers as yours negotiated when their lease was expiring. If you have a one carrier tower company-owned tower with 5 years remaining and low rent- we search our database of thousands of lease extension offers and amendments for other similar towers.
• Provide Fair Market Valuation Every situation is different. Knowing what other landowners have received in similar situations is very helpful. However, knowing what makes your specific tower or lease more or less valuable to the tenant and how difficult it would or would not be to relocate is invaluable. We provide a very specific valuation of YOUR site at YOUR location under YOUR circumstances. We tell you the fair market value of YOUR lease at the time we do the assessment and we provide guidance on whether the lease will be more valuable in the future.
• Recommend a Strategy We will determine how to best position yourself in the negotiations, and explain the upsides and downsides associated with each proposed term. This will include recommendations for rental amounts, lease duration, escalation percentages and additional clauses, such as Right of First Refusal and collocation terms.
• Answer Questions and Counsel Through Your Negotiation Once we tell you what we think your lease is worth- we continue to support you as you attempt to fully realize that value. Our services include unlimited questions and answers for a year subsequent to when we deliver our valuation. This includes reviewing subsequent lease extension offers and the proposed lease amendments. We will work with your attorney to provide actionable guidance on what lease clauses and conditions can be changed and what should be left alone.