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Importance of Maintaining Consent Clauses 

As tower companies optimize their lease language, having consent in your agreement is crucial. They often remove consent clauses in amendments if the original lease required it. While consent can delay work, it prevents property owners from requesting rent increases each time. Maintaining consent is invaluable as it provides the ultimate financial security for property owners. Ensuring that consent clauses remain in place helps protect your interests and secures a stable income from your property. 

Understanding Consent Letters

If you receive a consent letter from a tower company, ensure you fully understand what they want you to approve. These requests are often for equipment replacement, adding dishes at different heights, or a new tenant collocation. Understanding the specifics of these requests is essential for making informed decisions. Recognizing that you should benefit from additions to the tower, as carriers pay extra for mounting dishes, especially on shorter towers where mount heights are priced at a premium, is key. If you’re unsure about the request, contact JP Tower Consulting for guidance. 

Maximizing Benefits from Tower Additions 

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Additions to the tower, such as equipment replacements or new tenant collocations, present opportunities for property owners to maximize their benefits. Carriers typically pay extra for mounting dishes, particularly on shorter towers where mount heights are at a premium. Ensuring that you understand and negotiate the terms of these additions can significantly enhance your revenue. For any uncertainties or to optimize your agreements, JP Tower Consulting offers expert guidance to help you navigate these requests effectively. 

Compound Consent FAQs

  • What is my cell tower lease worth?
    The value of your lease depends on several factors. If it has over 15 years left and escalates at 3% annually, its market value is roughly 19 times the annual rent. However, lower escalations or a Right of First Refusal (ROFR) can decrease its value. For leases within 15 years of expiration, tenant composition and lease duration are critical. Closer expiration dates increase value, especially with multiple carriers. Sites with less than 5 years left are valued based on a multiple of what the perceived negotiated rent would be at final lease expiration. While a site under 2 years from expiration is based more on a multiple of tower cash flow.
  • How long will the process take to sell my tower lease?
    The timeline for closing depends on any title defects and how quickly attorney redlines are resolved. It's crucial to clear any lines, judgments, or back taxes before starting the process to sell your lease to avoid complications. If there's a mortgage, discuss an SNDA with the lender as it's often required for closing, especially if the loan amount matches or exceeds the purchase price. Properties without a ROFR are simpler to transact. Typically, closing takes 3-6 months, but unforeseen issues might extend it beyond a year, especially with ongoing negotiations between attorneys.
  • When is the best time to sell my tower lease?
    Consider selling your lease if it has less than 10 years remaining, as it's often valued differently by tower and third-party buyout companies. Another opportune moment is just before or after an escalation hit if your lease is long-term. Ensure you have a plan for the proceeds before selling.
  • Should I have an attorney review this lease buyout?
    Absolutely, I recommend getting legal advice. If you sell the property without proper consideration for the tower lease, it could complicate the sale or burden the buyer with unexpected costs like property taxes. That’s why you’d want to account for a reimbursement for property taxes so a future buyer wouldn’t be on the hook for taxes on a tower they receive no benefit from. Contract terms will always favor the tower company and hiring a telecom attorney for that piece of mind is crucial.
  • How long is the buyout for?
    Lease buyouts are often structured as perpetual or 99-year easements. If you prefer shorter terms, third-party buyout companies offer options with 50- or 60-year easements.
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