Telecom providers are rapidly expanding their networks by installing antennas, fiber hubs, and small cell nodes on commercial and mixed-use properties. This demand presents new revenue opportunities for landlords who are willing to lease rooftop, utility, or ground space for equipment installation. While these arrangements may seem like low-effort income streams, telecom leases and licenses are not standard real estate transactions. They introduce long-term obligations, technical and regulatory complexity, and heightened legal exposure. Property owners who enter into telecom agreements without thorough review may unknowingly give up control of critical areas of their buildings or open the door to difficult and costly disputes.

One of the most important legal concerns in telecom leases is how access rights are granted and defined. These agreements often include long initial terms, such as ten to twenty years, combined with automatic renewal options that can extend the lease for decades. Many telecom providers also seek broad easement rights that give them permanent or exclusive access to rooftops, utility rooms, risers, or exterior walls. Without clear limitations, landlords may lose the ability to reconfigure building systems, perform maintenance, or repurpose valuable areas of the property. To protect long-term flexibility, the agreement should clearly identify the licensed area, describe the equipment to be installed, and limit access to specific days and times. Restrictions should also address what happens when access interferes with building operations or tenant use.

The physical and visual impact of telecom equipment is another critical issue. Equipment such as antennas, conduit, backup power units, and wiring enclosures can be unsightly, noisy, or physically disruptive. They may interfere with HVAC systems, mechanical access paths, or even obstruct signage or sightlines valued by other tenants. In multi-tenant or retail properties, aesthetic considerations can affect leasing and tenant satisfaction. A carefully drafted agreement should require prior landlord approval of all installations and modifications, including detailed plans and specifications. Owners should reserve the right to impose design standards, require camouflage or screening of visible equipment, and relocate systems as needed for future renovations or improvements.

Liability and risk allocation must also be addressed directly through strong indemnification and insurance provisions. Telecom installations typically involve third-party contractors who are not under the landlord’s direct control, increasing the risk of injury, property damage, or building code violations. The tenant should be required to indemnify and hold the landlord harmless from all claims arising out of equipment installation, maintenance, use, or failure. This includes damage to the building, interference with other systems, and injuries to workers or third parties. Insurance requirements should include commercial general liability, workers’ compensation, and property damage coverage, with limits that reflect the scope of the installation. The landlord should always be named as an additional insured and provided with certificates of insurance prior to installation.

The financial terms of the telecom agreement also require careful attention. Many providers propose a flat base rent with minimal escalation over the life of the lease, despite the fact that market demand and property costs may increase substantially over time. Given the often long duration of these agreements, landlords should include annual rent increases tied to a fixed percentage or an index such as CPI. In addition to base rent, landlords should consider charging fees for rooftop access, electricity usage, and any engineering or legal reviews. These additional charges can help offset the costs associated with managing and maintaining the installation over time.

Finally, property owners should tightly control subleasing and assignment provisions. Telecom providers often attempt to retain the right to sublicense their space to other companies or assign the agreement without landlord approval. This can result in third parties accessing your building, installing equipment you did not approve, or using the premises for different purposes altogether. To prevent this, the agreement should clearly prohibit any transfer of rights, occupancy changes, or sublicensing without the landlord’s prior written consent. Owners should also reserve the right to evaluate any proposed assignee or sublicensee for technical capability, insurance compliance, and financial stability.

What may appear to be a passive, low-risk income stream can quickly become a long-term burden if the agreement is not carefully negotiated. Poorly drafted telecom leases can interfere with property operations, limit redevelopment options, and expose landlords to unexpected liabilities. For commercial property owners, it is essential to approach telecom agreements with the same level of scrutiny and legal review as any other major lease transaction. At Harborview Law, we help landlords and property managers evaluate and negotiate telecom leases that protect their interests, maintain property control, and maximize long-term value. If you have been approached by a telecom provider, we can help ensure the agreement aligns with your goals and safeguards your property.

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