Apr 19, 2018 - 02:40 AM
I am not surprised that you are seeing increased activity from Sprint. We are hearing similar activity elsewhere especially in your state.
In regards to CCI’s proposal, we think of this like any other situation in that it depends upon the other options available to Sprint. As a tower company, CCI will always attempt to limit the additional rent for ground space and will try to negotiate it directly. Depending upon the situation, we advise either requiring the sublease tenant to enter a lease directly with you or negotiating more suitable terms with CCI. The latter is easier, the former tends to generate better lease rates. I don’t have that much concern with forcing compliance with the lease by a subtenant- either way it just requires appropriate lease language.
Historically from what we have seen, the rates for additional ground space for a tower company lease are less than what the carrier will pay for the space directly, so you should consider up front whether your priorities are tied more toward maximizing revenue or minimizing lease administration and creation of a new lease. Either way, the wireless carrier will end up paying the additional rent burden.