Posts in:March, 2014

Cell Site Lease mistakes by Municipalities

Posted March 31, 2014 by admin

Recently we had been sent a lease that an municipality was close to executing on a water tank. The basics of the lease had a $1,320 a month in rent with 7.5% increases every 5 years to the rent with a major U.S. carrier. Sounds like a good deal, right? No, not really. The average market rents for the area were higher than the proposed lease amount. The bigger issue is the escalation clauses. The proposed escalation percentage is less than half of what the market wireless lease escalations should be. If nothing changed with the cell lease rent amount and we just changed the escalation clauses to the current market for cell site leases, the difference in value was $133,ooo Continue reading…

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