Skip to content

Rent Reductions

Our Services

Assessing the Risks

Wireless carriers such as AT&T, Verizon, and Sprint/T-Mobile along with tower companies like American Tower and Crown Castle, often hire third party rent reduction firms (that represent that they act on behalf of the carriers) to pressure wireless property owners to reduce their rent and escalator or face possible site termination. The goal of these companies is to decrease the overall lease cost for that site by getting property owners believing that their site rent may be imminently decommissioned. These rent reduction firms are often compensated by the carriers depending on the savings they can provide them, even when the carrier has no real intention of terminating their agreement. Nonetheless, unwitting Property owners, fearful they may lose the site rent entirely if they do not agree, often consent and end up with substantially reduced rents.

That said, it is important to understand that although a typical wireless lease has a 25-to-30-year term, virtually all wireless leases can be terminated by the carrier with as little as 30 to 90 days’ notice. In other words, cell site rents are rarely ever guaranteed and sites do get terminated due to a variety of reasons such as:

Emerging technologies like small cells that make certain macro sites obsolete 

Excessively high market rent for a given site compared to others nearby 

Carriers merging networks leads to duplication of coverage; redundant sites can be targeted for decommissioning

5G Cellular Tower with Cloudy Sky Background.

It’s always important to assess these risks so that a valid strategy can be implemented.

Given the 30-to-90-day lease termination clauses and the other potential risks for decommission, it’s always important to assess these risks so that a valid strategy can be implemented. When faced with a rent reduction proposal, it is important to have WREP address the issue and determine the carrier’s motivation. Although carrier’s may have termination rights, they do not always wish to activate them given the costs of relocating and the reduction in network coverage from losing key sites.

Therefore, WREP encourages landlords facing a rent reduction not to immediately succumb to pressure tactics until our firm can evaluate the risks using our expertise and decades of industry knowledge. We will leverage our relationships and industry experience to assess the likelihood of a site decommission for our client and work together to implement a strategy.

Another strategy employed by carriers and their rent reduction counterparts is to use this nerve-wracking time for the owner to add seemingly benign amendments in certain agreement amendments that may limit an owner’s contractual rights or ability to increase revenue in the future. Some of the most common amendments sought are the inclusion of a Right of First Refusal for the carrier or allowing for subleasing of space without consent or compensation. Let WREP help you navigate these contractual negotiations, so you optimize your wireless carrier revenue. 

Think WREP for all your wireless carrier needs. We’re on your side.

Owner Advocates – focused on increasing value and enhancing revenue from your existing wireless lease agreements.