Collocation rates

by Michael
(Palmer, Alaska)

Verizon has decided to offer me collocation percentages on the lease that we are currently negotiating... I am wondering what the average percentage rate for a collocation agreement is... Please and thank you...

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Jun 29, 2012
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starstarstarstarstar 		Verizon co-location / subleasing values
by: Tower Genius

Michael thanks and great question. Generally, Verizon does not pay any subleasing or co-location revenue share unless they absolutely have to. If they are offering something then kudos to you, well done so far. Subleasing rates are all based on supply vs. demand. What other alternative sites or locations are available to put the cell tower, vs. what they are trying to cover, how badly they need the site, and how much money they have already invested into the pre-development stage (ie. engineering design visits, architectural drawings, etc.).

Since it's site specific, I can't tell you it's worth an extra $200, $350 or $500 per month per carrier subtenant, or if a certain percentage would be better, because you might have a situation where it would be more advantageous to control the ground space outright. Once we can determine how much leverage you have, that will determine what you can ask for on the co-locating future tenants.

Additionally Verizon Wireless has certain terms crafted into their lease that most landlords simply agree to and sign that are outrageous and should never be agreed to that need to be struck in their entirety from the lease in the areas of taxes, subleasing and assignment, right of first refusal, easements, and filing of the memorandum of lease (for starters).

If you'd like to discuss this further offline, please give us a call ASAP at 888-313-9750 until 6PM Eastern Standard Time.

Tower Genius

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