Newbie with Tower question

Check out this thread for some answers:

http://forums.wirelessadvisor.com/c...rwire-wireless-tower-land-lease-question.html

 

Good advice on the thread above. Don't get greedy and push for too much. If you're their 3rd choice, you're probably not the best spot for them, and probably don't need your location too desperately.

Also, make sure you have an escape clause, for example, if you sell your property then the lease is terminated and Verizon will remove the tower at their cost.

 

Hi,

I could possibly help a bit, but as a resident of CA, I'm not familiar with the lease rates in your particular area.

First, they are asking for a ton of land (50'x50' is excessive for a single carrier). The reason being is that they will sublease out from under you and most likely in the agreement require all sublease rights in their compound lease area (thus, any future colocator will not have to pay a dime to you). The primary way around this is to lease a bare minimum of space to them to allow just their equipment and have it explicitly state that any future tenants on the ground must lease from you (they would get a rent on their structure as well). Monopoles typically only require a 12'x20' space for standard outdoor equipment cabinets and the space for the tower. Shelters, of course, need more space. They may ask for space for temp generators or other uses that are temporary. A way around this is to lease only the equipment space, but grant an easement for the temp stuff like a generator.

$600 / mo in CA is unheard of. Most lease rates start at $800 for the middle of nowhere up to around $2k. Leases above that are common place as well but are for more restrictive areas and limited candidates.

If Verizon didn't like the other two candidates, maybe they wouldn't have an issue going up to $1,200. Remember, they're low balling you.

The 10% every 5 years is low as well. A more common increase is 3% a year. Lease rates in CA at below $2k a month and 3% a year require no special approval by the carrier, typically (i.e. VP authorization).

There are a ton of things to look out for in a lease, and I advise an attorney (and make them pay for it as well). The carrier leases are naturally one-sided and leave you with little rights as a lessor (termination, access, corrective measures, and so on).

Sure, there is a risk they might bail, but if the other two candidates were not favorable to them, you're at an advantage.

Naturally my advice is worth the cost paid ...