You’ve been approached by a wireless carrier to lease space on your building or property—now what? While rent is an important consideration, you should keep in mind other ways to generate revenue in the future, including limiting the carrier’s right to perform equipment modifications without your consent and requesting revenue sharing for future subtenants.
In addition to the rent, there are non-monetary terms to consider, such as Right of First Refusal provisions that limit your ability to sell the rental stream to a buyout company or automatic renewal terms that extend the length of the lease indefinitely. Other key terms to review include provisions relating to insurance, maintenance of your property, taxes arising from the carrier’s use of the property, and your right to terminate the lease.
If you already have a wireless lease and are worried the time to maximize its value has passed, fear not. There are still opportunities for you to capitalize on your lease, namely when the carrier asks for your permission to add or alter equipment on your property or if the carrier wants to renew the term of your lease. Oftentimes, the landlord’s consent is required for equipment modifications and an amendment will be required to extend the years left under the lease. This is a key time to ask for a rent increase or change any unfavorable terms.
Although a thorough review of the lease by your attorney is advisable, these suggestions are a good first step in your negotiation for a new lease or an amendment to your current lease.