Are you a private or government wireless site landlord who has been approached by your wireless tenant, or a firm representing your tenant, demanding you cut the rent and/or significantly change the terms of your wireless lease?
This often-odious practice is called “Lease Optimization.” Not surprisingly, usually the only truly valuable optimization is for your wireless tenant.
The usual threat is that if you don’t give the concessions demanded, your wireless tenant may invoke a clause in the lease to walk away, perhaps in 30 days or less. The implication is that you’ll lose out on all of your future site income if you don’t give in now.
The larger wireless firms often use use third-party companies to do their lease optimization bidding. Two of the major players performing rent optimization on behalf of wireless firms are are Black Dot Wireless, Md7 and the Lyle Company, but there are others out there as well.
If you’re contacted, it’s quite possible that they’ll tell you something like this: Your wireless tenant has ‘many other sites in the area,’ or because of ‘economic conditions’ or because of ‘changes in the wireless industry’ so they no longer have a pressing need for the site they lease from you, but (and here’s the kicker) if you agree to cut the rent usually give other concessions, the tenant select a different site to close down instead of your site. Gosh, it’s your lucky day!
Sometimes in trade, the wireless tenant through the lease optimizer will offer a ‘rent guarantee period.’ During the guarantee period, the carrier will agree–essentially–not to walk away from the lease or try to reduce the payments again for a period time, commonly for a period 10 years. At the same time, you’ll usually be asked to give up other valuable rights, such as the right to sell your lease to whomever you want. You might be required to give a first-right-of-refusal on the sale of your property (which can reduce the marketability of your property…just ask us how).
This is a particularly good time to go out and take some measurements of your tenant’s cell site. If it is over-occupying your property this would be a particularly good time to know this as a fact, and to act on it. If your site is being over-occupied by your wireless tenant, you’ll want to be very, very careful about agreeing to a rent cut, and especially a rent cut based on an inaccurate occupancy. PLEASE CLICK HERE TO READ MORE about over-occupancy and underpayment.
We have grateful private and government clients who have faced this vexing dilemma, and we’ve helped them survive this type of frontal assault on the value of their existing lease. We know how to determine if the story being told is true–and usually this is not the case–or if it’s just a ploy to squeeze the landlord using techniques that may well be legally improper.
We’re ready to help you, the wireless site landlord, fight off these often-baseless demands.
If you get a call from your wireless tenant, or their representative, let us help you, as we’ve helped many other cell sit landlords. For a free initial 30-minute consultation with one of our wireless lease attorneys, please call us toll-free on (855) Cell-Site or send us a message by clicking here.