Does your building have a rooftop lease agreement with a wireless carrier or does your association have a telecommunications tower lease agreement?
The major wireless carriers (Verizon Wireless, AT&T Wireless, T-Mobile, and Sprint) are actively seeking rent reductions to their existing site lease agreements. The carriers often hire a third party company, who contacts the building rooftop owner or tower owner and attempts to negotiate a rent reduction to the existing lease agreement in exchange for a longer “guaranteed” term and several other “not-so-pleasant” leasing conditions, such as the tenant modifying contract terms without paying increased rent to the owner. Has your association or have you been contacted to renegotiate your rooftop lease agreement(s) or even sell your existing lease agreement outright? Do you know what the correct value of your lease agreement is? Do you know if selling your existing lease agreement is the correct choice?
When drafting a lease agreement with any of the wireless carriers do you know what to look for and what to accept and what to reject? Is it wise to accept an annual payment of rent rather than a monthly payment of rent? What should the annual escalation be or is it wise to consider a term escalation? Should the agreement permit “site improvements?” These questions and more need to be answered correctly when constructing a lease agreement with the wireless carriers and it would be wise to construct a binding document so in the future, when an amendment is required, it will be a rent increasing opportunity for your community.
Converged Connect provides guidance in reviewing and constructing lease agreements, license agreements, amendments, and letters of intent with the major wireless carriers for more than 20 years to ensure contract terms are in the best interest of your association and community.
by Michael Davis, Converged Services Inc., Michael can be reached at firstname.lastname@example.org or (610) 613-9969.