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" <[email protected]>
To: [email protected]
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
[email protected]
Office: 630-621-4804
Cell: 630-777-9291


On Thu, Mar 23, 2017 at 1:47 PM, Paul McCall <[email protected]> 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>

[email protected]

www.pdmnet.com

www.floridabroadband.com





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