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MD7 Cell Tower Lease Deals

MD7: LEASE OPTIMIZATION COMPANY PROFILE

Ken Schmidt
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Md7 is what is known in the industry as a lease optimization company. It acts as a third party, working on behalf of wireless carriers (the Lessee), to negotiate cellular leases with landowners, building owners and public entities (the Lessor). Md7 representatives receive commission based on the amount of rent that they reduce; in fact, they have built specific constraints into the database they use to evaluate the minimum amount by which they can reduce rent in order to still receive a commission. They are also paid bonuses when Lessors accept amendments to their leases.

MD7 LEASE NEGOTIATION STRATEGIES: WHAT LESSORS SHOULD BE AWARE OF

You may think you are actively “negotiating” with Md7; but it is all part of their marketing strategy. They may hide behind the confusion that’s often generated by industry mergers in order to negotiate rent reductions. They are not exactly lying when they tell you some sites will be terminated; in fact, as with most mergers, one of the expected benefits is the reduction of expenses such as duplicative assets like cell sites, however, what they don’t mention is that the demand for cell sites (and collocating on them) is as strong, if not stronger, than it ever was – so don’t accept their warnings at face value. Md7 agents use standard scripts with verbatim responses, so if the script doesn’t contain a direct answer, they will typically attempt to redirect you back to the script or create another justification.

IS TERMINATION A REAL RISK?

Steel in the Air believes that it is becoming more difficult for carriers to increase profits simply by adding more subscribers – a problem that will only get worse in the future. As expansion becomes harder, carriers will start looking to reduce operating expenditures which makes sense since these costs represent the second highest for carriers. These cutbacks could take the form of rent reductions or outright terminations, so there is some definite risk to you as the landowner. However, Md7, on behalf of the wireless carriers, is also using the threat of termination to reduce rent on cell sites that the carriers have no intention of terminating. Making the most informed decision requires that you fully understand the risk, and the value of your particular cell site.
Today, most of the contact we see from Md7 is as follows:
  1. Proposals to amend Sprint leases to add additional equipment to the site
  2. Proposals to purchase leases from leaseholders (in this capacity, they are acting as a lease buyout company)

If you have been contacted by Md7 regarding your cellular lease and have been asked to sign an amendment with little to no compensation, we advise you take caution. You may be entitled to additional compensation for those modifications. Please reach out to us and we will gladly review your lease and the proposal at no cost and then let you know whether you need our services further and if so, how much they will cost.

Steel in the Air has assisted individual landowners, large corporations, municipalities and even tower owners. Our clients are our best reference, so don’t take our word for it – see what our clients have said. We’ve helped over 125 clients successfully negotiate their leases with Md7. If we can be of similar assistance to you, please contact us.

If you found this page in error while looking for the Md7 company website, please visit www.Md7.com. Steel in the Air is an independent consulting firm that assists landowners with evaluating offers from Md7. Md7 and Md7 Wireless, Sprint, Nextel, Cingular and AT&T are registered trademarks of Md7, Sprint, Nextel, Cingular, and AT&T. Steel in the Air is not affiliated with any of these companies.

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