The leasing experts at Vertical Consultants have seen a recent rise in telecommunications and cell tower companies inserting confidentiality provisions into agreements and amendments. At Vertical Consultants, we want to provide the best advice possible to landowners, which is why we want to explain the problems associated with signing a confidentiality provision.
Companies like BlackDot Wireless and Md7 run their businesses by purchasing undervalued leases from landowners like you, usually at a severely discounted price, and then negotiating higher rent from your tenant. Whenever this happens, the third party company is cutting into the tenant’s profit margins; therefore, the tenant will take any steps possible to prevent you from selling your cell tower lease. Normally, this is accomplished by including a right of first refusal; however, more and more landowners are realizing the value of refusing to sign away their freedom to sell their cell tower rental stream.
While right of first refusals state exactly what rights you are assigning to your tenant, confidentiality provisions hide behind vague wording and alternative explanations. Your tenant will say they need a confidentiality provision in order to keep business terms and copies of their forms away from their competitors, but this is an explanation designed to misdirect landowners. Confidentiality provisions are inserted for the same purpose as a right of first refusal-it prevents third party companies from acquiring cell site rental streams. If the landowner cannot tell the interested buyer what terms are in the cell tower lease, the interested buyer is unable to make a purchase offer.
If you are presented with either a right of first refusal or a confidentiality provision, we advise you to refuse to sign the agreement until the provision is removed. If you are having difficulty discussing these terms with an interested tenant, or if you would prefer to have an expert handle the discussions for you, give Vertical Consultants a call today. We have negotiated many agreements while successfully removing a right of first refusal or confidentiality provision. We may be able to do the same for you!
In 2022, Vertical Consultants averaged an immediate 302% increase in rents being received by its clients, and since 2010, has been able to assist its clients in the recovery of over 300 years worth of combined underpaid, and, in some cases, unpaid rents and other expenses that were rightfully due to these property owners located throughout North America.
To learn more about our services, visit https://www.celltowerleaseexperts.com or contact Vertical Consultants at info(at)vertical-consultants(dot)com or 877.456.7552.
