Cell Tower Lease – Right of First Refusal (ROFR)

Many new cell tower leases, antenna site leases, or lease extensions contain a provision entitled a “Right of First Refusal” or ROFR. Understanding what this means for your property is critical before signing.

The idea behind a ROFR in a cell tower lease is that it protects your cell tower tenant from any lease buyout offer you might receive from a third party. Specifically, a ROFR gives your tenant the right to match any bona fide offer you receive for your lease, effectively giving them veto power over any future sale.

While the underlying concept of a ROFR may seem fair, there are many factors a cell tower landlord must consider:

• Does the ROFR apply to the entire property, or just the leased premises?
• How is “fair market value” defined in the context of the ROFR?
• Does the ROFR extend to your heirs or successors?
• What notification requirements must you follow before selling?
• Could the ROFR depress the market value of your property?

Gunnerson Consulting is a consulting group focused solely on the interests of property owners who manage cell tower and wireless infrastructure sites. Contact us before signing any lease containing a Right of First Refusal provision.