Wireless infrastructure lease agreements: Do you really know what you’re signing?

By now, it is evident that office buildings and public venues need high-quality in-building mobile coverage. Less evident is how to acquire the right coverage to satisfy the demand. Should property owners purchase a system, seek a solution funded by a carrier or a third party, or in the case of office buildings, place the burden on the tenants? Despite the new mantra of enterprise-funded solutions, many properties still qualify as excellent candidates to receive “free” mobile coverage from at least one wireless carrier. Regardless of the option chosen, it remains very much a case of caveat emptor.

With a growing number of third-party companies seeking exclusive rights to “market” these properties to the carriers, it can be difficult to determine which ones are in the best position to accomplish the task. Further complicating the decision is the fact that the interests of some third-party companies and carriers are seldom aligned with the best interests of the property. As a result, too many property owners have assigned wireless infrastructure rights to third parties and carriers only to find that after many years, they’re still waiting for a solution to be deployed or additional carriers to join.

Fortunately, new entrants to the marketplace are creating more competition, which in turn is driving better alignment between parties. The challenge for the property is twofold: (1) to choose a wireless infrastructure provider with the best capabilities for enticing multiple carriers to join a system quickly and (2) to protect the property from lease language that unfairly benefits the infrastructure provider at the expense of the property. Identifying onerous lease language is not always easy for the layperson – or even for experienced attorneys – to spot.[1] Therefore, property owners and managers are wise to consider engaging the services of an experienced wireless infrastructure consultant before entering into a long-term lease agreement.  In future blog posts, I’ll address some of the “gotchas” that, if not negotiated out of the lease, can come back to haunt the property.

[1] Russ-Hobart is not a substitute for your corporate counsel. We aid your counsel, recommending critical business terms needed to draft the ideal lease.