Lease Extensions

Thirty, forty or more year lease extensions are not uncommon for most carriers and tower companies. This means for landlords who are retired or are semi retired this may be the last time you will be able to get the lease terms that mean the most to you. CSA recommends landlords think about at minimum the following areas.

Rent Increase

Is the rent increase in line with market rents for similar sites in your area? Many landlords have lease rents that far below market rate so even a significant rent increase could still be low. CSA maintains market rent data then uses that information to make sure clients receive at or above market rent increases based on the equipment on the tower at the time.

Early Termination

Mergers, and or new technology like satellites and small cells are among top reasons why your site may not pay rent through to your lease end date. Landlords who want to protect themselves ask CSA to work on including early termination fees that require the tower company to pay additional rent if the lease is terminated early as a way to protect and adjust to lost income, particularly for landlords who rely on lease income for retirement.

Revenue Share

Do you receive revenue share for each new tenant, antenna added or when additional space is used? Depending on your site and how the revenue share language is written you could miss out major revenue sharing opportunities. CSA is focused on making sure the term “Revenue Share” actually means revenue for you and your family.

Relocation

What happens if you or a future owner wants to develop your property after you extend? Will the tower company be obligated to cooperate with you? What’s happens if they don’t? These are all questions you need to have answers to before you extend your lease. CSA can work with you on creating a game plan to have these issues addressed in your extension.

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