Pandemic-Related Rent Reductions?

By Christine Gillan

Fierce Wireless reported that the wireless industry “might just be pandemic-proof”! While some phone subscribers are unable to pay their bills, Verizon has seen an increase in the number of its postpaid subscribers/customers and AT&T has seen an increase in their number of prepaid customers. All US operators seem to be on track with their 5G deployment even though other countries are seeing their 5G deployments delayed or scaled back.

Even in the best of times, it is not uncommon for wireless carriers to hire third-parties, like BlackDot or Md7, to call the landlords under their leases to request rent reductions. The third-party will claim that the reduction is necessary due to a claimed loss in revenues at your telecom site. Do not be fooled into thinking that the pandemic adds weight to these claims! The carriers are doing fine and there may be no reason to agree to a rent reduction under any circumstance.

On the contrary, telecom sites are seeing equipment swaps and additions to support 5G technology, which means that, if you have a strong lease, you should be receiving an increase in rent and not a decrease. Therefore, if you get a call requesting a rent reduction, contact us to help you distinguish between fact and fiction. There is no cost for an initial consultation.