Your Current Lease Has Loopholes

Most of the loopholes in current leases work against the landlord.  But some work against the wireless carrier.  One area to look at includes government licenses, approvals, permits, and other permission from federal, state, and local governments.  Another loophole is generators.  Contact Kreines & Kreines, Inc. to find out more about the loopholes that can work in the landlord’s favor. 

There is Light at the End of the Tunnel

Fortunately for the landlord, each lease has a beginning and each lease has an end.  Cell sites are usually for five-year terms with:

·            One or two options for the carrier to renew for five years each time.  The landlord has no options.  These are short leases for the overall period, and they are uncommon.

·            Three or four options for the carrier to renew for five years each time.  The landlord has no options.  These are mid-term leases, and they are fairly common.

·            Five options for the carrier to renew for five years each time, resulting in an overall 30-year lease.  The landlord has no options.  This is the most common form of lease.

Carriers often approach landlords at the time that the last option is running its course.  The carrier may offer to extend the current lease with a small rent increase and a signing bonus.  Kreines & Kreines, Inc. advises its clients not to extend the current lease.  Instead, the light at the end of the tunnel is to negotiate a new lease.  We can help.

Should Landlords Fear That Carriers Will Move Their Cell Sites?

Kreines & Kreines, Inc. believes that the best cell site locations have already been built on.  Getting a new cell site approved is very difficult in 2009 and it will be even harder in 2010.  The tendency for the carrier will be to stay put, even if the equipment needs “upgrading,” “modification” or total replacement.

Consider also that the carrier as tenant must usually return the leased site to good condition less ordinary wear and tear.  Kreines & Kreines, Inc. reminds its clients: there are two costs to consider in negotiating a new lease.  One is the cost for the carrier to redeploy.  The second is the cost for the carrier to return the landlord’s property to pre-lease condition, less ordinary wear and tear.

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Kreines & Kreines, Inc.
58 Paseo Mirasol, Tiburon, CA 94920
Phone: (415) 435-9214
Fax: (415) 435-1522
e-mail: mail@planwireless.com