Common Questions about Lease Extensions

CellTowerLeaseLandowners throughout North America are approached on a daily basis by their cell tower tenants seeking to extend their current lease. Why are cell tower companies contacting a landowner when there are still several years remaining on the term of that agreement? The answer is usually tied to time and money. Cell tower lease experts are available to assist property owners who have been contacted about negotiating lease extensions, and our team can help you answer the important questions listed below:

  • Why does a tower company want to amend my lease when there are 5, 10 or more years remaining on the current term of that agreement?
  • What is the fair market value of rents for my property, and should it be based on the current rent amount?
  • How will agreeing to an extension of my current lease term affect the overall value of my property?
  • Does a tower company need to extend my lease to get additional tenants, and, if so, should I have the right to share in revenues received from such additional tenants?
  • If I do not agree to an extension of the current lease, can the tower company relocate its tower?
  • What is the current value of my lease to the cell tower company, and how should this be calculated?
  • How much revenue is the tower generating for the tower company, and why will the cell tower company not disclose such information to me?
  • How many years should I agree to extend my lease for, and what are the disadvantages of extending your lease for too long of a term?
  • Is my current lease paying me rent that is fair market value, and what factors should be considered in determining this amount?

The decision a landowner makes today as it relates to an extension of its current lease may mean hundreds of thousands of dollars over the life of is lease, as few hundred dollars more a month means a lot when paid over 10, 20 or more years. This is an important transaction and should not be taken lightly, as, at the end of the day, as noted above, it could mean a lot if not correctly structured.

The cell tower companies, as much as they would like you to believe, are NOT on your side, nor will they look out for your best interest, as their primary interest is to get the best deal for their company, not for you. Their first concern is their bottom line, shouldn’t yours be as well?

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