Renegotiating a Mobile Tower or Mobile Site Lease / HOME

Renegotiating a Mobile Tower or Mobile Site Lease

On a weekly basis, SiteXcell gets inquiries from landowners who are currently leasing space for a mobile site or in an agreement with a mobile tower company or wireless carrier. Many times these landowners feel that they either negotiated the mobile site lease for too little rent or that the previous owner did. In some cases, they are right.

This issue is compounded by the fact that a number of mobile site leases and agreements from towers built in the early-mid 1990s are about to expire. This is due to tremendous building of mobile tower sites after the Telecommunications Act of 1991 was enacted, as well as Optus and Vodafone acquiring their carrier licenses. Although the majority of current mobile tower leases provide for multiple five year terms that are renewed entirely at the discretion of the wireless carrier or tower company, many of those older mobile tower leases do not have an additional renewal clause in them and will expire in the near future.

IF YOUR MOBILE SITE LEASE HAS NO FURTHER RENEWAL CLAUSE - Then you are in a good position in most cases to renegotiate the mobile site lease. Depending upon the location and the number or tenants who are currently using the tower, you might be in a great position to ask for substantially more revenue from the tower company or wireless carrier or take the tower over yourself and receive additional revenue from other tenants. We at Steel in the Air & SiteXcell recommend that you first consult an attorney to determine what your responsibilities are under the current mobile site lease. Then feel free to contact us for more information about how we can help you determine what is the best course of action for you to take in renegotiating your mobile site lease. You can try to take this on yourself, however there exists some risk that the tower company or wireless carrier might decide to relocate their tower or mobile site elsewhere and you might lose all the revenue. Or, you may fail to negotiate the best deal and leave money on the table month after month. See our lease chart to see how much of a difference even $1200/year can mean over the course of a mobile site lease.

IF YOUR MOBILE SITE LEASE HAS A RENEWAL CLAUSE OR HAS NOT EXPIRED - In most cases you will not be able to renegotiate regardless of whether or not you believe the mobile site lease rate is fair. Many contracts, especially those written in the last five years, are very well written from a legal standpoint and do not allow termination by the landlord. If, however, the mobile tower company or wireless carrier is currently in default of the lease, then the landlord can use whatever legal remedies are available to him under the lease and the laws of that state or territory. Common breaches of mobile site leases are: failure to pay rent, use of ground outside of the lease area, use of equipment or structures that are not covered under the lease, and subletting or assignment in a way that is not allowed under the mobile site lease. Speak with an attorney regarding these breaches. If the attorney believes the contract has been breached, contact us to see if we may be able to help you renegotiate your agreement.