What Claims Do Tower and Telecom Companies Make When Seeking a Lease Extension?

billericamulti3[1]Property owners need expert assistance in interpreting the claims that a cell tower company presents when seeking a lease extension, which include the following:

  1. Claim #1:  “Due to the value of the long term relationship we have with you, the landlord, we are willing to extend the current lease for the cell tower with you”.

Translation:  In reality, they need the extension of time more than you do.


2. Claim #2:  “We are willing to pay you a ‘signing bonus’ if you agree to extend the lease”.

Translation:  While a signing bonus is great, it is usually only a small fraction of what should be offered for the landowner’s consent to an extension of the lease.


3. Claim #3:  “We are willing to allow the lease to continue to escalate as provided

for under the current terms of the lease agreement”.

Translation:  This is basically giving you something that you already have a right to and, in some cases, the tower companies are actually seeking to effectively reduce a landowner’s annual rent escalations by having them agree to certain things like a Consumer Price Index (“CPI”) rent escalation. What the tower company is not telling you is that while your current annual rent escalations could be 3% or greater, agreeing to a CPI escalation could lower your annual rent increase to less than 1%.  This would cost you tens of thousands of dollars over the life of the lease.

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