The current economic downturn in 2009 has operators actively developing cell phone towers knowing that real estate is down and that financially deficient property owners may be willing to sign leases quickly. The NIMBY crowd (not in my backyard) who strongly oppose cell towers are now willing to have monopoles built on their properties in most cases.
However, let the buyer be careful or rather in this case let the lessor be careful. Operators have a way of sneaking language into their cell phone tower leases that can directly impact the profitability of your cell site.
Here are some basic tips on what to do when dealing with wireless carriers:
o If approached by a cell phone operator looking to build a tower, be sure to seek professional wireless industry advice. Even a good real estate attorney may miss something in the agreement. Slight changes in wording can affect protection against tax assessments, subletting rights, and rental fees.
o If your tower company or carrier tries to renegotiate terms with you because your cell tower lease expires after 15 or 20 years, they usually want you to sign it immediately. Don’t budge. Chances are if you signed up for a cell tower in the early 1990s, you agreed to language that seriously reduced your earning potential on the site and you were ready to cash in on it. However, seek industry expert reviews and/or negotiate your mobile site rental terms.
o Also, there are many wireless parasites that work on commission and try to extort landlords from thousands of dollars a year for their mobile rental payments by giving them confusing and often incorrect information. If you’ve been approached by a cell tower rental reduction company, tell them to stop harassing you. Mention the local FCC or Attorney General and they will move on to the next cell phone tower site and they will most likely never darken your door again.
Perhaps the funniest thing about the cell phone tower NIMBY crowd, is that most of them have cell phones or blackberries, which ring occasionally during zoning board hearings. For property owners, it is very important that before you enter into any lease with a company that proposes cell phone towers that you read the fine print in their rental agreement.