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A rent guarantee is a renegotiated lease that has removed the current early termination clause and replaced it with an average of a five-year guarantee from the carrier. In exchange for amending the termination language, the new lease includes a new lease rate, escalator, and/or lease enhancements that optimize site maintenance.

Md7 has been authorized by your carrier to contact cell site landlords who have been invited to participate in a rent guarantee program. Your carrier determines which landlords should be contacted, and has partnered with Md7 to administer this program because of our expertise in real estate asset management and cell site leasing.  Md7 will oversee all aspects of your rent guarantee and guide you through the decision-making process efficiently and with the highest standard of care.

Md7 is a preferred real estate asset manager for top national wireless carriers and is authorized by your carrier to administer this program.  We have built our business and reputation upon solid relationships with both landlords and carriers.  Our excellent credentials validate our experience and expertise and are evidenced by letters of authorization, industry reports and testimonials from among the thousands of landlords we have helped to secure their cell site revenue

Carriers are actively reviewing their real estate portfolio to evaluate which sites to retain and which sites to decommission. The possibility of losing your site is real. Years ago, carriers were terminating less than one percent of their cell sites. Due to mergers, new technology and a commitment to operating efficiency, the industry’s volatility has significantly increased this decommission rate up to 20 percent. Market analyses have revealed that carriers pay eight to ten times more per square foot for their lease than do interior tenants— tenants who often have less desirable credit ratings or worse, no credit at all. The market to retain cell sites is more competitive as carriers seek to relocate to sites that offer fair market rates.

Your carrier’s network engineers have initiated a site review based on the specifics of your location or lease.

This is a dynamic industry that provokes constant change and incites continual risk. For example, new technology requirements have left some sites incompatible to the future network design. These sites are often cheaper to decommission than to upgrade. A guarantee would assure that this kind of volatility does not continue to jeopardize your cell site income.

The possibility of losing your site is real as carriers are constantly reevaluating their network design. But if you secure your site with a rent guarantee, the future network will be designed around you, no matter what changes occur along the way.

The contract currently includes a termination clause that the carrier may invoke for many reasons. In your case, the reason is likely that the carrier is paying eight to ten times more per square foot for the space they lease versus tenants inside the building. Like any tenant, the carrier has every right to expect to pay a fair market rate for its lease. The carrier is honoring its relationship with you by bringing this issue to your attention, when in fact, it could be more economically advantageous for them to relocate to a new site. But they would prefer to reinvest in their relationship with you, which includes offering to secure your site and guarantee your income.

Not necessarily. Your site may still be at risk for lease termination. With the introduction of wireless broadband and such technologies as wireless streaming video, the need for more sites at lower heights has become more common, making the height of a cell site less important.

You have the option to participate or not. The terms of the program are set forth by the carrier and we are authorized to assess your eligibility, explain the benefits to you and report your decision to the carrier.

This is an industry-wide movement that all carriers are actively participating in. Carriers are committed to achieving operating efficiency and rent guarantees are an important initiative in all of their business plans. If you haven’t heard from other carriers yet, chances are you will.

Contact an Md7 lease consultant to review your eligibility. Our lease consultant will send you a proposed lease amendment for your review. When you sign the lease amendment, Md7 will notify the carrier that you have chosen to participate in the program and the carrier will execute the amendment.