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