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Early Cell Tower Lease Termination

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Cell Tower Lease Termination Clause

Leases can be terminated early meaning your rent can stop substantially sooner than the normal 30+ years lease term. All carriers and tower developers anticipate the possibility of early termination by placing an escape clause in their contracts. About 99% of all leases in the US have early termination clauses that allow wireless carriers and tower owners 60-90 days to terminate their leases early. While the specifics differ in each tower lease, this gives the wireless tenant the ability to be off-the-hook any time during the life of the lease with a few months’ notice to the property owners. Wireless carriers do exercise this termination right in situations involving company mergers, changes in engineering designs, or to lower their operating costs. How you, as the property owner, respond to this change is critical. In these situations, the property owner still has options, which Terabonne can assess and discuss with you to produce a fair outcome. Understanding how the industry works and the engineering requirements of the surrounding area makes this potentially a blessing in disguise. If you’ve been informed that your cell tower lease is going to be terminated early and the tower will be decommissioned, please call Terabonne and let us explore the options that are available to you, free of charge.

Cell Tower Decommissioning Notices and Lease Termination

When T-Mobile officially acquired Sprint in April 2020, Terabonne began to see Cell Tower Lease Termination and Decommissioning Notices from T-Mobile in August 2020 show up at our commercial clients’ locations. As expected, T-Mobile’s first wave of site terminations were at properties where both Sprint and T-Mobile exist on the same cell tower or rooftop. T-Mobile hired companies across the country and instructed them to get their cell sites decommissioned as cheaply as possible, often at property owners’ expense. At Terabonne, we’ve stepped up the contractual and technical enforcements to protect our clients’ interests. More importantly, you as the property owner have options in a decommissioning event that T-Mobile will not share with you.

Lease Termination Clauses Are Found In 99% Of All Leases

Call Us Today to Explore Your Options

Let’s be creative. You don’t need to be a victim in a site decommissioning situation. In fact, it could even be a blessing in disguise. Wireless carriers will have you believe that they will terminate the lease and stop paying you rent. The end. However, there’s more to the story. There are no standard lease termination languages. Companies from across the country have negotiated independently over the past decades. The termination clauses are all different. Wireless carriers also have interests and motivations too. Understanding how to investigate the carrier’s interests and turning them to the property owner’s advantage is where Terabonne comes in. If you received a cell tower lease termination notice from your wireless tenant, please call us to explore your options together.

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A ROFR grants the tower owner the right to match an offer by some third party who makes an offer to purchase your lease that you accept.

Crown Castle, American Tower ATC, SBA Towers are the “Big Three” tower companies.

Attorneys retained by wireless carriers authorized to review legal terms but never allowed to negotiate financial nor technical terms of the lease because they lack the technincal skills.

A person who specializes in land use matters well knowledgeable in its jurisdictional requirements.

A person hired by the wireless carrier to contact property owners to discuss lease terms. This role has evolved to be landlord facing rather than lease negotiations.

Geographical areas depicted in a circle (ring) drawn by radio frequency (RF) engineers defining the areas requiring new cell towers and technical parameters surrounding such designs.

Companies who build towers and lease back to wireless carriers.  These companies almost always receive Search Rings from wireless carriers defining where carriers need towers to be built.

Radio Frequency engineers who specialize in the radio wave propagation. These are the engineers to define cell tower locations. 

Companies that purchase cell tower leases with the purpose of repackaging (aggregating) them in a larger portfolio and selling them for a profit at a later time.