Cell phone towers, NIMBY?

The current economic downturn of 2009 has carriers actively developing cell phone towers knowing real estate is down and financially strapped property owners may be willing to sign a quick lease. The NIMBY (not in my backyard) crowd who have been so opposed to cell towers are now willing to have that monopoly built on their property in many cases.

However, buyer beware or rather, in this case, landlord beware. Carriers have ways of sneaking language into your cell tower leases that can directly affect the profitability of your cell site.

Here are some basic tips on what to do when dealing with wireless service providers:

o If you are approached by a cell phone operator looking to build a tower, be sure to seek professional advice from the wireless industry. Even a good real estate attorney could miss something in the agreement. Slight wording changes may affect protection against tax assessments, sublet rights, and rental fees.

o If your tower company or provider is trying to renegotiate terms with you because your cell tower lease is expiring after 15 or 20 years, they usually want you to sign quickly. Not budget. Chances are if you signed up for a cell tower in the early 1990s, you accepted language that seriously reduced your earning potential on the site, and you’re ready to cash out. Still, have an industry expert review or negotiate the terms of your cell site lease.

o In addition, there are a host of wireless parasites that work on commission and try to squeeze thousands of dollars a year from landlords in their cellular lease payments by feeding them confusing and often false information. If you have been approached by a cell tower rent reduction company, tell them to stop harassing you. Mention the FCC or your local Attorney General and they will move on to the next cell phone tower site and most likely never darken your door again.

Perhaps the funniest thing about the NIMBY cell tower crowd is that most of them have cell phones or blackberries, which occasionally ring during zoning board hearings. Landlords, it is imperative that before you enter into a lease with a company that proposes cell phone towers, that you read the fine print in your lease.