5. The Minimum Amount Of Term The Better
Extension terms, while attractive to landlords in commercial leasing, are not in the landlord’s best interest in cell tower leases. That is because cell tower leases typically allow for the tenant to terminate with thirty (30) days notice,
however, the landlord cannot terminate until lease expiration. So if the landlord agrees to thirty (30) years total in lease extensions, they are locking themselves into the lease for that period of time, while the tenant can terminate next month if they want to.
6. Remove The Right Of First Refusal
The Right of First Refusal, or Right On Sale, provision needs to be removed from any cell tower lease agreement. The tenants rights are significantly protected in the lease agreement and this provision is overreaching. By keeping this provision in the cell tower lease agreement, you significantly restrict your ability to sell the cell tower lease in the future. When many buyers see this provision in a lease, they will not waste their time on making an offer to purchase your lease. Why make an offer to buy something, if someone can just take the deal at the price you have offered? Don’t limit your options – have the right of first refusal removed from your cell tower lease agreement.
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