A new American Tower tactic? Or just new to me?

by John
(Vallejo, CA)

Short history. Tower site is in Vallejo, started in 1996 @ $600 a month with a 3% annual increase and a 50% profit sharing for any sub-lease tenants. They later raised annual to 5% in exchange for dropping profit sharing (which was zero at the time).
A few years back they paid $25K for a lease extension in 5 year options out to 2056.

Lease is currently at $2,000 per month.

This morning they called and said Sprint was coming off the tower, the tower would then be at a loss, and that they could cancel the lease. However, if I wanted to pass it on to my heirs, they would like to lower the annual escalation to 3% and give me $10K for agreeing to that.

I said, "Ummm, no". End of call.

If they cancel, site improvements, building, tower and fencing all stay. Of course I'd like them to remain, but I'm okay either way! I suspect this is just more of the continuing tactics for them to save a buck.

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Aug 23, 2019
There is opportunity in chaos.
by: Tower Genius

But for whom?

Anybody else see something like this recently? Thoughts?

Let's see if anyone else chimes in in the next couple of days.

We have the fix but curious to see if anyone else in Towerlandia has any ideas.

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