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 > > > > > > >
