Sprint Nextel MD-7 Lease Renegotiations
Many landowners with Sprint or Nextel equipment located on their property have received offers, usually from companies such as Black Dot or MD-7, acting on behalf of Sprint Nextel, requesting that the lease be renegotiated as a result of the recent merger between the two companies.
In the event they do not renegotiate the lease, the landowners are told by the MD-7 representatives that they run the risk of having the lease terminated at some point in the future. Faced with this decision, many landowners are considering entering into an amendment with Sprint Nextel to avoid possible termination of the lease.
The Sprint Nextel MD-7 Lease typically includes the following provisions:
- Term- the term of the Sprint Nextel MD-7 Lease is changed to a new initial term of 5 years and is automatically renewed for 5 additional terms unless Sprint gives written notice of its intent not to renew the lease before the expiration of the then current term.
- Rent- the rent under the Sprint Nextel MD-7 Lease is reduced from the current amount to approximately half or less than the current amount and will remain unchanged, without increases, under the new initial term and all renewal terms.
- Rent Guarantee Period- the original lease termination rights are modified such that Sprint will guarantee the rental amount for a specific period of time, typically 3 years, without the right to terminate the lease unless due to the landowner’s breach of any term of the lease or due to the property no longer being usable through no fault of Sprint.
- Termination- the termination clause under the original lease which permits Sprint Nextel to terminate the lease at any time for any reason on prior notice, is changed such that Sprint may terminate the lease at any time for any reason only after the expiration of the Rent Guarantee Period unless due to the landowner’s breach of any term of the lease or due to the property being no longer usable through no fault of Sprint.
- Lease Enhancements- the Sprint Nextel MD-7 Lease incorporates an exhibit which entitles Sprint Nextel to additional enhancements not included in the original site lease. Specifically, it grants Sprint the right to expand the size of its Premises on the property for the purpose of any modifications or increase in the size of its equipment or for any other reason in Sprint’s sole discretion. The rent payable for the additional space will be at a specified price per additional square foot. In addition, the exhibit to the Sprint Nextel MD-7 Lease allows Sprint, at no additional cost, to modify, relocate, or expand any of its equipment within the leased premises. Sprint may also operate its equipment at any frequency for which it has permits at no additional cost.
How should a landowner respond to the Sprint Nextel MD-7 Lease which seemingly grants Sprint more rights on the property while paying substantially less money?
This is where Cell Tower Attorney can help. We can assist you in negotiating a Sprint Nextel MD-7 Lease that:
- appropriately limits Sprint’s additional rights under the amendment.
- protects your rights under the Amendment as well as the existing Lease by narrowly defining the obligations of the parties and contingencies.
- protects you and your property from further liability and the likelihood of unanticipated circumstances or uses occurring on the property.
We are available to provide comments to the proposed amendment and discuss with you any additional concerns or questions that are specific to you or your property. Alternatively, if you prefer, we can negotiate on your behalf directly with MD-7 to finalize all aspects of the Sprint Nextel MD-7 Lease.
If you have been approached by MD-7, please consider contacting us for assistance in your lease negotiation.
*** If you are looking for Sprint Nextel's website, please visit Sprint Nextel. We are not affiliated in any way with Sprint Nextel.***