June 5, 2016

Time to Negotiate?

Is it time to negotiate your cell site lease?

Cell antenna contracts are very specialized.  They benefit the telecoms.  Current information is critical for negotiations. From experience since 2010 we know the goals of cell companies use specialized industry knowledge to negotiate for owners and property managers.  We consider:

  • What is your site worth to the telecom?
  • Are you negotiating with an agent?
  • Are you being paid for everything that’s installed?
  • Do you have current rates?
  • Have you been told that is the best rate available in the area?
  • Are they in a hurry to get you signed?
  • Are your rents stuck at CPI ?

Lease Review

Determine what your site is worth to the telecom.   Most sites generate over a million annually.

  • Is this a good time to negotiate?
  • Is the lease in compliance? 
  • Have antennas been added?
  • Is the lease at market value?
  • What is your Rent Index?
  • Is there an opportunity for rent improvements?
  • Do renewal terms improve income?
  • How has the installation changed?
  • Did the carrier get permission to add antennas?
  • Do you have other carriers?  Getting paid?
  • Does the lease limit the landlord’s rights?
  • Are safety records current?
  • What are your liabilities?

Lease Renegotiation 

When leases renew:

  • Does the carrier want to extend the lease? 
  • Is 10% or CPI being offered?
  • Is this an opportunity for more rent?
  • What is the rent index of the site?
  • How much equipment is now on site?
  • What does the carrier want to add ?
  • Is the carrier getting paid by other carriers on your site?

Site Enhancement 

What has been added to your site?  Are you being paid?

  • What is the rent index of your site?
  • What capacity additions have been done?
  • Is existing equipment being modified?
  • Are new antennas being added?
  • What RRUs are being used?
  • How many carriers will be on the site during the term of the lease?
  • Is each lease controlled separately?
  • Are additions restricted?
  • How much compensation is being paid for each addition?

Co-Location Analysis

Who is on your site?  Are you getting fair rent?.

  • Which other carriers are on, or are planning to share your site?
  • The Rent Index includes other carriers
  • Who controls the co-location lease?
  • What revenue types do you receive from each co-locator?
  • What controls do you have?  What control does the tenant have? What is your combined liability?
  • What indemnifications are in place?  Are they adequate?
  • Do you have Safety Code 6 reports from all carriers?
  • If power fails, what is your liability?

Lease renewals on expiring contracts

Understanding carriers needs. 

  • When is the lease due?
  • Other carriers on the site?  Subleases?
  • Is a Rights of Way registered?
  • What terms are being offered?  Are they default terms?
  • What is your Rent Index
  • Are you being paid for growth on the site?
  • Does installation restrice ownership rights?


Contact us today for your free rent audit.