Sublease renewal and increase in compensation per industry guideline

A utility company has an existing utility easement across our property. The easement conveyed to them did not grant them the right to sublease for communication equipment. We negotiated a 20 year agreement with the right for use to increase fee each 5 year renewal period and 2% annually. We based the first five years on a fair market value appraisal. Now we want to increase the second five years. What do we use to guide our terms for increase? How much is fair per the industry standards?

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Apr 25, 2015
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by: Tower Genius

There are no official industry standards. The "guidelines" or common carrier practices do not favor landlords, so you can throw them out the window. Everything related to the valuation of a cell site or easement depends on location, difficulty of locating, relocating or accessing the site, what it covers, how great of a demand there is for coverage. We can't give you a number based on your question because we need more information. Please feel free to contact us if you think we can help.

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