3 things cell tower landlords need know for 2021
Happy New Year to all! Now that 2021 is here, big things are coming in the world wireless infrastructure. For one, AT&T, Verizon and T-Mobile are all upgrading and building new sites in support of 5G. Second, Dish Wireless will enter the market with help of Crown Castle and others to begin building 20,000 new cell sites. With all of this activity there are three things all cell tower landlords need to know:
A) Upgrades are coming and your consent maybe required - The carriers will need to change antennas and upgrade equipment and in many cases these upgrades will require the property owners consent. This maybe an opportunity to increase your rent and or improve your lease terms so don’t miss the opportunity.
B) Lease extensions are a must - Tower companies like SBA and American Tower are marketing available space on your tower but they need at least 15 years remaining on your lease in order to do so. Landlords who know this have the potential of adding rent and better lease terms. If you receive a request to extend your lease, don’t agree or sign anything unless you have a cell site professional on your side to make sure your site stays at or above market rate.
C) Terminations are coming - Despite all of the positive activity, there will be many tower lease terminations in the years to come. As the carriers increase the number of small cells on lamp posts and telephone pools, the carriers will look to remove expensive and or redundant cell towers particularly Sprint and T-Mobile cell towers due to the recent merger. Now is good time to contact to a cell site professional to determine if your site is in the cross hairs and what you can do to protect the long term valued of your lease.
As we continue on into 2021, we’ll keep you posted on all the latest developments. If you have questions, contact CSA today and we’ll be glad to explain what you have in your lease.