David Moore, CEO/principal, and Amber Brandhagen, COO/principal of Axiom Global Wireless, recently shared insights into the often-complex world of cellular tower leasing. Axiom Global Wireless exclusively represents landlords and property owners in these transactions, aiming to ensure they receive fair terms and maximize the value of their real estate assets.
Understanding Axiom’s Exclusive Representation
- Axiom Global Wireless exclusively represents landlords and property owners in cellular tower, infrastructure, and edge computing leasing. The name "Axiom" was chosen to signify a self-evident truth: their unwavering commitment to property owners.
The Pitfalls of Uninformed Leasing
Moore highlighted that property owners often enter cellular tower leases without fully understanding the terms, leading to them being disadvantaged compared to wireless carriers and tower operators. Common issues include:
- Favorable Tenant Clauses: Leases often contain first right-of-refusal clauses, multiple rent increase options, and confidentiality agreements that brick-and-mortar investors would not typically grant.
- Devalued Income Streams: First right-of-refusal clauses can devalue the lease income, hindering a property owner’s ability to sell the lease to outside investors.
- Under-Market Rents: A lack of readily available market data for cellular tower leases means many owners inadvertently charge significantly less than market rates, leaving substantial income on the table.
- Lack of Industry Nuance: Standard real estate brokers often lack the specialized knowledge required to navigate the complexities of the cellular industry.
Axiom’s Value Proposition
Brandhagen explained how Axiom adds value by:
- Negotiating stronger lease agreements.
- Evaluating and negotiating lease buyout offers.
- Renegotiating amendments and extensions.
- Providing lease audits and conflict resolution.
- Managing multi-site portfolios and cell site operations.
- Unlocking hidden value in similar agreements, such as billboard leases.
Moore emphasized that their primary goal is to help property owners create balanced lease agreements that enhance property value and restore control to the owner.
Understanding Easements in Lease Buyouts
Brandhagen cautioned property owners about "buy" offers for their cell leases. These often involve selling the lease agreement and assigning it via a recorded easement, not just the income stream. Moore clarified that an easement grants a third party long-term or permanent rights to access and use a portion of the property for wireless facilities. Unlike standard leases with termination dates, easements can have significant implications for future property use and sale.