New Tower Negotiations
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Navigating New Lease Negotiations
When approached by a site acquisition specialist about a cell tower, remember they may be evaluating multiple properties nearby; in rural areas, limited options can give you leverage for higher rental payments.
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Overcoming Challenges
Negotiating in rural areas comes with its challenges, especially when zoning regulations are stringent, and terrain is difficult. These factors can significantly limit cell tower placement options. In such settings, taller guyed towers up to 300 feet can be built, but other considerations come into play. Access road length, for example, is a critical factor often overlooked. Longer roads increase construction and maintenance costs, making it essential to ensure that the operator covers road maintenance, including any damage incurred during construction.
Securing Your Interests
In new lease negotiations, having a consultant and experienced attorney on your side is crucial. Site acquisition specialists operate nationwide, scouting ideal locations for cell towers. It’s imperative to protect yourself from complex agreement language and potential pitfalls. Investing in expert review may seem like an additional expense, but it’s well worth it for safeguarding against challenges and ensuring that you don’t agree to unfavorable terms.
Don’t navigate new lease negotiations alone. Contact JP Tower Consulting today to enlist the expertise of seasoned professionals who can guide you through the process. With our assistance, you can confidently secure the best possible terms for your property, ensuring a favorable outcome for years to come. Take the first step towards maximizing the value of your land—reach out to us now!
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FAQs About New Lease Negotiations Consulting Service
The rent for your tower will vary based on its location. In rural areas, you might receive offers around $500 per month, which should be your minimum threshold. However, you might negotiate for a higher price. On the East or West coasts with challenging zoning, you could aim for over $1,500 per month. Tower builders secure options to negotiate better deals, so gathering information from knowledgeable sources is crucial.
Absolutely. The new contracts have highly restrictive legal provisions for property owners. I suggest working with a telecom attorney who specializes in these agreements, rather than a general real estate attorney. Many telecom attorneys are experienced in these negotiations, and I can recommend a few if necessary.
Whoever is negotiating against you will seek 5%-10% every five years. For optimal growth, aim for an annual rent increase rather than every five years, ideally around 3%. That was once the industry standard, but now carriers favor 2% escalations in Master Lease Agreements and new sites. So even if you must agree to 2% per year it’s better than 5%-10% per term. This shift reflects a focus on cost control in the industry.
Tower companies and developers prefer long-term leases to maintain control over rent and lease escalation. I strongly recommend avoiding leases spanning 35-100 years. Aim for a 25-30-year lease instead, allowing room for renegotiation, particularly if the tower company adds multiple tenants. If the tower succeeds, you should have a chance to benefit during lease renegotiation.
Tower Developers and companies are connecting with several property owners to secure option leases, choosing the ideal location for their tower. They aim to offer an annual payment to reserve that portion of the property. I suggest aiming for an option payment between $5,000 to $10,000 per year. This ensures you receive compensation even if they don't select your property in the end.
increase tower value. This also enables your heirs to negotiate effectively. Standard rent escalation with predictable terms is favored by tower companies for its security and stability.
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