Answer
Jan 17, 2023 - 04:37 PM
Generally, we are opposed to the non-compete clause in any lease and typically reject its inclusion. However, there are scenarios where we would recommend it to our clients:
First, if the parcel is small and/or it is unlikely another tower would be built in the future on the parcel.
Second, the offer they have made to extend the lease increases the lease rate substantially or improves it in other ways and justifies the inclusion of the non-complete clause.
No matter what the situation, the standard non-compete clause in a cell tower lease is much more broadly drafted than it should be and should NEVER be signed as presented. If you are going to accept the clause, you should make sure that your attorney redlines the clause so that it only applies to another cell tower on the property. Otherwise, they could use the clause to prevent you from doing stuff on the property that has nothing to do with the tower. That includes selling the lease.
Lastly, at the risk of seeming self-serving, you should reach out to us or another consultant before you agree to any terms. Our initial discussion is free and if we think we can't help you- we will let you know that. But generally, you shouldn't have to compromise on lease extensions.
Ken
First, if the parcel is small and/or it is unlikely another tower would be built in the future on the parcel.
Second, the offer they have made to extend the lease increases the lease rate substantially or improves it in other ways and justifies the inclusion of the non-complete clause.
No matter what the situation, the standard non-compete clause in a cell tower lease is much more broadly drafted than it should be and should NEVER be signed as presented. If you are going to accept the clause, you should make sure that your attorney redlines the clause so that it only applies to another cell tower on the property. Otherwise, they could use the clause to prevent you from doing stuff on the property that has nothing to do with the tower. That includes selling the lease.
Lastly, at the risk of seeming self-serving, you should reach out to us or another consultant before you agree to any terms. Our initial discussion is free and if we think we can't help you- we will let you know that. But generally, you shouldn't have to compromise on lease extensions.
Ken
Add New Comment