Extending an existing lease.

by Andrew
(Miami, FL)

I currently own a property that has an existing cell tower. I purchased the property in 2006. The property is in Miami, FL. When I purchased the property the previous owner had agreed to a lease through 2030, he recieved a lump sum payment and I am not entitled to income from that lease until 2030. Recently I was contacted by someone representing Crown Castle that has acquired my lease through a large acquisition. They are now looking to extend the current lease through perpetuity , or as many years as possible. As consolation they have offered a small upfront payment and to share revenue for any new clients they are able to acquire. My concern is if I agree to extend the current lease, I may be signing away future revenue.
Also there is no guarantee that they will be able to secure new tenants.
Please advise.

Comments for Extending an existing lease.

Average Rating starstarstarstarstar

Click here to add your own comments

May 08, 2014
Rating
starstarstarstarstar 		Where is the old lease.
by: Anonymous

A few thoughts

Get the old lease and calculate where the rent would be at this point (as if he never had sold). Then start the negotiation from that monthly "rent" upward.

*Don't give them a First right of refusal.
*Make sure you have an annual increase. Mine was 6%, then ATT hired a consultant to scare me into a reduction of both rent and increase. Now 3% and my rent from $3,990.00 per month is $2,200.00

Crown Castle has purchased ATTs' leases. They have an option to purchase the equipment in 2030 , this is what I understand.

Then before signing anything, call these guys to get what you missed and the most out of this.

Click here to add your own comments

Join in and write your own page! It's easy to do. How? Simply click here to return to Cell Tower Leasing Discussion.

Tower Genius is USA's Premier Cell Tower Lease Coaching and Consulting Firm. Find out how we help landlords and property owners in the USA maximize cell site lease values and get the best possible terms. Book a 30-minute discovery consulting call with Kevin or Steve Today.

Click Here To Schedule A Call.

  • Cell tower lease agreements
  • Selling Cell Tower Lease
  • Tower lease extensions
  • Cell site upgrades
  • Small cell proposals
  • Lease amendments
  • Tower lease buyouts offers
  • Rooftop lease buyout offers
  • Rooftop cell site audits
  • Lease Agreement defaults
  • Cell tower valuations
  • Rent reduction solicitations
  • Lease Optimization Help
  • Lease Revenue Purchase
  • Transactional Coaching
  • Verizon Wireless 
  • AT&T
  • T-Mobile - Sprint
  • DISH Wireless
  • US Cellular
  • SBA Communications
  • Crown Castle
  • American Tower
  • Atlas Tower
  • Phoenix Tower PTI
  • Vertical Bridge
  • Lendlease Towers, Md7
  • Tillman Infrastructure
  • Lyle Company, Black Dot
  • Everest Infrastructure


Like this page? Show us some Social Love. Here's how.

Would you prefer to share this page with others by linking to it?

  1. Click on the HTML link code below.
  2. Copy and paste it, adding a note of your own, into your blog, a Web page, forums, a blog comment, your Facebook account, or anywhere that someone would find this page valuable.