Re: [AFMUG] Escalator % on tower leases

[Lewis Bergman]

The best you are likely to get is a single escalation after term like 7 to
10 percent after a five year term.

It works a lot better for you than annual escalation.  I usually won't do
those but maybe you can swing it.

I would argue it doesn't matter if your income increases or not. If the
towner owner's expenses increase or they just want to keep pace with
inflation them that is their model. I would argue that towers are alot like
annuities. The people that own them look for a consistent income that
slightly outpaces inflation.

If you can't figure out how to do the same in the WISP business maybe that
is an issue to address.

On Thu, Mar 23, 2017, 5:08 PM Adam Moffett <dmmoff...@gmail.com> wrote:

> I've never had to deal with it.  I guess I would argue that the ARPU of
> internet access does not increase at 3% per year.  It's historically been
> stationary or even slightly downward.  If you're not going to make 3% more
> money every year, then there's no reason you could afford to pay 3% more in
> rent.
>
> Whether or not it's totally true, I could make a defensible argument to
> that effect.
>
>
> -- Original Message --
> From: "Erich Kaiser" <er...@northcentraltower.com>
> To: af@afmug.com
> Sent: 3/23/2017 4:10:21 PM
> Subject: Re: [AFMUG] Escalator % on tower leases
>
> 3% is standard, just put a clause in to re-negotiate after x number of
> years.
>
>
> Erich Kaiser
> North Central Tower
> er...@northcentraltower.com
> Office: 630-621-4804
> Cell: 630-777-9291
>
>
> On Thu, Mar 23, 2017 at 1:47 PM, Paul McCall <pa...@pdmnet.net> wrote:
>
>
>
> I know the tower companies like to sneak a pretty healthy escalator in
> there, based on a fixed percentage… 3%,4% etc.
>
>
>
> Has anybody been successful getting them to change that, either lower to
> like 2% or go off something more friendly like the Consumer Price Index,
> etc. ?
>
>
>
> You don’t think it’s much, but 10 years later (we’ve had some towers now
> for 15 years) it can almost double the tower rent.
>
>
>
> Curious to see what others have been able to negotiate.
>
>
>
> ??
>
>
>
> Paul McCall, President
>
> PDMNet, Inc. / Florida Broadband, Inc.
>
> 658 Old Dixie Highway
>
> Vero Beach, FL 32962
>
> 772-564-6800 <(772)%20564-6800>
>
> pa...@pdmnet.net
>
> www.pdmnet.com
>
> www.floridabroadband.com
>
>
>
>
>
>
>

Re: [AFMUG] Escalator % on tower leases

[Adam Moffett]

I've never had to deal with it.  I guess I would argue that the ARPU of 
internet access does not increase at 3% per year.  It's historically 
been stationary or even slightly downward.  If you're not going to make 
3% more money every year, then there's no reason you could afford to pay 
3% more in rent.


Whether or not it's totally true, I could make a defensible argument to 
that effect.



-- Original Message --
From: "Erich Kaiser" <er...@northcentraltower.com>
To: af@afmug.com
Sent: 3/23/2017 4:10:21 PM
Subject: Re: [AFMUG] Escalator % on tower leases

3% is standard, just put a clause in to re-negotiate after x number of 
years.



Erich Kaiser
North Central Tower
er...@northcentraltower.com
Office: 630-621-4804
Cell: 630-777-9291


On Thu, Mar 23, 2017 at 1:47 PM, Paul McCall <pa...@pdmnet.net> wrote:



I know the tower companies like to sneak a pretty healthy escalator in 
there, based on a fixed percentage… 3%,4% etc.




Has anybody been successful getting them to change that, either lower 
to like 2% or go off something more friendly like the Consumer Price 
Index, etc. ?




You don’t think it’s much, but 10 years later (we’ve had some towers 
now for 15 years) it can almost double the tower rent.




Curious to see what others have been able to negotiate.



??



Paul McCall, President

PDMNet, Inc. / Florida Broadband, Inc.

658 Old Dixie Highway

Vero Beach, FL 32962

772-564-6800 <tel:(772)%20564-6800>

pa...@pdmnet.net

www.pdmnet.com

www.floridabroadband.com

Re: [AFMUG] Escalator % on tower leases

[Josh Luthman]

I thought it was always 3% to adjust with GDP or inflation or whatever BS


Josh Luthman
Office: 937-552-2340
Direct: 937-552-2343
1100 Wayne St
Suite 1337
Troy, OH 45373

On Thu, Mar 23, 2017 at 4:10 PM, Erich Kaiser 
wrote:

> 3% is standard, just put a clause in to re-negotiate after x number of
> years.
>
>
> Erich Kaiser
> North Central Tower
> er...@northcentraltower.com
> Office: 630-621-4804 <(630)%20621-4804>
> Cell: 630-777-9291 <(630)%20777-9291>
>
>
> On Thu, Mar 23, 2017 at 1:47 PM, Paul McCall  wrote:
>
>>
>>
>> I know the tower companies like to sneak a pretty healthy escalator in
>> there, based on a fixed percentage… 3%,4% etc.
>>
>>
>>
>> Has anybody been successful getting them to change that, either lower to
>> like 2% or go off something more friendly like the Consumer Price Index,
>> etc. ?
>>
>>
>>
>> You don’t think it’s much, but 10 years later (we’ve had some towers now
>> for 15 years) it can almost double the tower rent.
>>
>>
>>
>> Curious to see what others have been able to negotiate.
>>
>>
>>
>> ??
>>
>>
>>
>> Paul McCall, President
>>
>> PDMNet, Inc. / Florida Broadband, Inc.
>>
>> 658 Old Dixie Highway
>>
>> Vero Beach, FL 32962
>>
>> 772-564-6800 <(772)%20564-6800>
>>
>> pa...@pdmnet.net
>>
>> www.pdmnet.com
>>
>> www.floridabroadband.com
>>
>>
>>
>>
>>
>
>

Re: [AFMUG] Escalator % on tower leases

[Erich Kaiser]

3% is standard, just put a clause in to re-negotiate after x number of
years.


Erich Kaiser
North Central Tower
er...@northcentraltower.com
Office: 630-621-4804
Cell: 630-777-9291


On Thu, Mar 23, 2017 at 1:47 PM, Paul McCall  wrote:

>
>
> I know the tower companies like to sneak a pretty healthy escalator in
> there, based on a fixed percentage… 3%,4% etc.
>
>
>
> Has anybody been successful getting them to change that, either lower to
> like 2% or go off something more friendly like the Consumer Price Index,
> etc. ?
>
>
>
> You don’t think it’s much, but 10 years later (we’ve had some towers now
> for 15 years) it can almost double the tower rent.
>
>
>
> Curious to see what others have been able to negotiate.
>
>
>
> ??
>
>
>
> Paul McCall, President
>
> PDMNet, Inc. / Florida Broadband, Inc.
>
> 658 Old Dixie Highway
>
> Vero Beach, FL 32962
>
> 772-564-6800 <(772)%20564-6800>
>
> pa...@pdmnet.net
>
> www.pdmnet.com
>
> www.floridabroadband.com
>
>
>
>
>

[AFMUG] Escalator % on tower leases

[Paul McCall]

I know the tower companies like to sneak a pretty healthy escalator in there, 
based on a fixed percentage... 3%,4% etc.

Has anybody been successful getting them to change that, either lower to like 
2% or go off something more friendly like the Consumer Price Index, etc. ?

You don't think it's much, but 10 years later (we've had some towers now for 15 
years) it can almost double the tower rent.

Curious to see what others have been able to negotiate.

??

Paul McCall, President
PDMNet, Inc. / Florida Broadband, Inc.
658 Old Dixie Highway
Vero Beach, FL 32962
772-564-6800
pa...@pdmnet.net
www.pdmnet.com
www.floridabroadband.com