Jan 19, 2017 - 01:44 PM
Thank you for your question on a "sandwich" lease type situation. I definitely think that you can ask for rent reduction from the owner in exchange for permission on the space issue. I suspect the property owner has reviewed other options with the tower company or they wouldn't be asking you. The key is whether they can make it work or not- which we can't tell without doing a more substantive review of the location. If you choose not to consent and they need the space, it will kill the deal for the owner unless there are no other properties in the vicinity that will work for the tower developer. In other words, no tower developer will wait a year for the lease space to become available- they will move on to another property. The problem here though is that the tower lease won't start paying rent until the tower is constructed which means that the property owner will have to come out of his own pocket in order to grant the rent reduction without the assurance that the lease will ever commence. One way to resolve this may be to take the option payment that the landowner gets for signing the lease.
If you think that the property is the only one in the area that the tower company can use- it might make sense to have the owner contact us for a valuation. If there are other properties- just work out the best agreement you can- perhaps taking some money now and some if the lease actually commences.
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