Considerations for Building Owners Best Practices for Drafting and Negotiating Lease Agreements for Telecom Equipment

Transcription

1 Presenting a live 90 minute webinar with interactive Q&A Rooftop Leases: Legal and Business Considerations for Building Owners Best Practices for Drafting and Negotiating Lease Agreements for Telecom Equipment TUESDAY, NOVEMBER 22, pm Eastern 12pm Central 11am Mountain 10am Pacific Td Today s faculty features: Jeffrey Moerdler, Member, Mintz Levin Cohn Ferris Glovsky and Popeo, New York Jeffrey R. Svenningsen, Sr. Operations Manager, Global Tower Partners, Boca Raton, Fla. The audio portion of the conference may be accessed via the telephone or by using your computer's speakers. Please refer to the instructions ed to registrants for additional information. If you have any questions, please contact Customer Service at ext. 10.

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5 Strafford Publications Webinar Telecommunications Agreements Types of Agreements and How they Differ November 22, 2012 Jeffrey A. Moerdler, Esq. Jeffrey R. Svenningsen, P.E. Mintz Levin New York Global Tower Partners Jeffrey A. Moerdler 2011

6 Summary Telecommunications Agreements Telecommunications leases, licenses or other agreements can provide a new source of income Unused spaces on rooftops, in basements, in mechanical rooms or in conduits becomes revenue generating as does the right to run wires and install antennas inside the building These leases, licenses or other agreements require little or no services or expenses by property owners and therefore generate pure profit to the bottom line, which directly translates into additional sale and financing proceeds Jeffrey A. Moerdler

7 Telecommunications Agreements Types of Telecommunications Agreements and Suitable Properties Inbound/access vs. outbound/transmission Small rooftop antennas (cellular, black car, small satellite dishes) Larger rooftop antennas (radio and TV, large satellite dishes) Inside building wiring, intelligent buildings and Plug-N-Go space Telecommunications closets and hub sites Distributed antenna and in-building wireless systems Owner installed and operated by Owner or a consultant Third party installed and operated Carrier installed and operated Jeffrey A. Moerdler

8 Telecommunications Agreements Types of Telecommunications Leases and Suitable Properties (cont.) Rooftop management agreements/master leases Antenna towers Antenna farms and teleports Data centers, colocation facilities and telecommunications switch facilities Jeffrey A. Moerdler

9 Technical Terms Telecommunications Agreements Bandwidth Riser Category 3 and Category 5 copper wire T1 & T3 carriers (1.5 Mbs and 45 Mbs) Fiber optic cable Sonet ring ILEC (Incumbent Local Exchange Provider) CLEC (Competitive Local Exchange Provider) POP (Point of Presence) Jeffrey A. Moerdler

10 Telecommunications Agreements Inside Building Wiring: Why Does a Landlord Have to Think About Telecommunications Services? Tenants site selection decisions increasingly consider available telecommunications infrastructure For some tenants, bandwidth is as important as location With cellphones and WiFi becoming ubiquitious, buildings must have good service throughout the buildings Some landlords have successfully marketed their buildings with advanced telecommunications services Jeffrey A. Moerdler

11 Inside Building Wiring: Service Needs of Tenants Telecommunications Agreements Local telephone service Long distance telephone service Voic , fax and other smart applications Internet access, , web hosting, portal and application services provider Intranet/Local Area Network (LAN) Data transmission Cloud hosting of applications Jeffrey A. Moerdler

12 Inside Building Wiring: Service Needs of Tenants (cont.) Telecommunications Agreements E-Commerce and E-Business solutions Virtual Private Network (VPN) Wireless telephone service Video/cable TV service Building and tenant security and building automation system monitoring Jeffrey A. Moerdler

13 Telecommunications Agreements Benefits of Inside Wiring Satisfy tenant s needs for services Provide redundant services Tenant retention and tenant acquisition Save tenants money on telecommunications usage Income from service providers Jeffrey A. Moerdler

14 Inside Building Wiring: The Landlord s Concerns Telecommunications Agreements Who will manage the riser and telecom infrastructure? Liability issues Revenue opportunity from telecommunications No disruption of rent revenue keep an eye on the core business Who pays for building s telecommunications infrastructure Redundant providers and pathways What happens if a provider defaults or goes out of business? How many providers are too many? Jeffrey A. Moerdler

15 Telecommunications Agreements Business Issues Term, renewal options and cancellation options Rental amounts, flat fee or percentage rent, rent increases Creditworthiness of tenant Electrical and other utility connections Control of riser space Jeffrey A. Moerdler

16 Business Issues (cont.) Telecommunications Agreements Security of risers Future of the industry Roof penetrations and warranties Size of space required Free or discounted services or work Jeffrey A. Moerdler

17 Legal Issues Telecommunications Agreements Lease vs. license agreement Environmental representations and indemnity Lender protective ti provisions i Non-disturbance agreement Assignability Alterations Use clause Jeffrey A. Moerdler

18 Legal Issues (cont.) Telecommunications Agreements Zoning restrictions and approvals Interference with other telecommunications equipment Restoration ti at end of term Compliance with laws Relocation Jeffrey A. Moerdler