Lease rate

by William
(Houston, TX)

We have a cell tower leased to SBA with about 10 years left on the initial agreement. Currently there are Tmobile and Verizon on the tower. Currently our monthly rate is at $1,343 with a yearly 3% escalation. Before Verizon came aboard, negotiation started with an extension of lease with 30% profit sharing discussed. After Verizon signed on, SBA would not budge on profit sharing as initially discussed. What is your assessment of all of this?

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Jan 02, 2017
Wait to renegotiate or Sell.
by: Stephen

SBA is not going to rush to improve your deal. Things may change in urban markets like Houston in 10-years.

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