Answer
Apr 23, 2015 - 02:10 PM
Our clients regularly ask us whether they have to agree to the typical 25 years being proposed by the wireless carrier or the 50-75 years being proposed by the tower company. Because of the capital investment required to build a cell site, and because other cell sites are built based upon their proximity to existing cell sites, the carriers need the assurance of a long term lease. Surprisingly, many of our clients think that a longer lease is more valuable. However because most leases contain termination rights only for the tenant/wireless carrier, it is less valuable than they might think as the longer term is a one way commitment. Twenty five years is typical and should be fine in most cases.
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Interestingly, if a lease length is for 99 years it is considered to be a perpetual lease. SITA does not typically recommend entering into perpetual leases.
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