Some wireless carriers shuttering a number of their existing wireless site leases. If you’ve received a notice of lease termination, it means that the tenant had decided that your site is no longer necessary in light of some change in ownership or technology.
Lease terminations translate to the loss of anticipated and substantial lease income for years or decades. For savvy landlords, site lease terminations can contain nuggets of significant value that your terminating tenant will not want you to know about, or take advantage of.
Adding insult to injury, some carriers employ third-party vendors to call and ‘convince’ landlords why, on the way out, they should execute a novel “Lease Termination Agreement and General Release” document. This document can cost you many thousands of dollars (or more) if you don’t understand all of its legally-dense burden-shifting terms.
A wireless site tenant, when terminating a lease, wants to save lots of money by not removing most of the equipment, wiring, conduits, cables, and the other things it installs. Removal of these items is typically required by most wireless leases, as is returning the leasehold to the landlord in the same basic condition that existing just prior to the lease. Some tenants now want to abandon their nearly-valueless equipment in place and transfer title of the abandoned equipment to the site landlord with no warranties whatsoever. With the abandonment go all of the legal liabilities, as well, which may include liabilities imposed by the local governments on your departing wireless tenant, but are then transferred by this agreement to the landlord.
‘Just sign right here on the dotted line and you get to take on all of your departing tenant’s discarded stuff and legal risks, and you save them a boat-load of money, too!‘ is just one way to think about this type of proposed deal.
Even worse, sometimes the third party contacting you on behalf of the departing tenant will suggest in writing that they can likely find a replacement wireless tenant quickly because these decommissioned sites will be “plug and play” solutions for other carriers…IF…you give up a 25% commission for the life of the revenue stream the vendor can negotiate. We’ve never seen a decommissioned site that’s really “plug and play” especially since the the valuable radio equipment is removed before abandonment of the junk cables, antennas, etc.
What to do: If you are a wireless landlord and you’ve received a notice of termination, go back and pull out your lease documents, including amendments.
Look at the termination terms and restoration terms, then give us a call for a free no-obligation initial 30-minute consultation. Our toll free telephone number is (855) Cell-Site.