What To Do When You Receive A Lease Optimization Demand Letter

Cell site landlords across the nation are receiving lease "optimization" demand letters from contractors hired by their wireless cell site tenants effectively threatening early termination unless rent and other concessions are granted.

The reasons given by the tenant can range from "our site on your property is not profitable"; "we have too many cell sites in your area"; "due to 5G, fewer cell sites are necessary and your site in on the chopping block"; all the way to "we need to lower the rent because of industry consolidation."

These odious letters often include landlord-hostile proposals such as if the landlord agrees to lower the existing lease rate, then the tenant will be willing to extend its lease at the lower rent rate for additional terms. Sometimes the pitch is that if the landlord lowers the rent now, the tenant will agree to forego early termination for 5 to 10 years. But adding worse to bad, these proposals often come with a number of new one-sided