Industry Eye: Pressure on costs mean more telecom mast sites will be merged and rents may be cut

While writing this article, we've had another good five inches of snow on the coast up in Northumberland and it looks like we are in for another cold week ahead throughout the North. While the cold weather and frost is allowing some to get compound fertilisers on, it looks like we are in for a late spring and for some livestock farmers, feedstocks are already running low having been feeding hard through the winter months.
By The Newsroom
Published 26th Feb 2010, 13:54 BST
Updated 26th Feb 2010, 13:54 BST

On a positive note though, I'm pleased to announce that we have now opened a new office in East Yorkshire, on the side of the A1079 Hull Road in Shiptonthorpe between Pocklington and Market Weighton, which I will be heading. Even more exciting is that Tom Mason, whose family farm on the wolds, has come to join us and starts on March 1.

Tom and I were at college together and along with Benna Jackson, who is in charge of business development, we make a youthful team of Yorkshire farmers' sons and daughters.

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I thought I would share some thoughts on the telecoms industry and the impacts on those with leases. For years there has been talk over the mergers between companies to reduce their operating costs and effectively reduce the number of telecoms mast sites.

It now seems this is coming into force and we are seeing an increasing number of clients asked to either reduce their rent significantly or run the risk the tenant will serve a notice to quit providing no further income.

It's vitally important therefore that you fully understand the termination provisions set out within the lease and whether or not they really have the ability to terminate early.

We are seeing a lot of leases that are extremely vague and not clear cut and therefore the landlord may have a very good case to argue against the notice to quit.

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If this was the case, the unexpired term of the lease may be valuable and you may be able to negotiate a very good early surrender payment.

This would be based on the rental stream that you would have received over the unexpired term, but from an operational point of view, it seems as though the telecoms industry is desperate to reduce annual costs.

However, they are likely to prey on those leases under which they have the provisions to terminate early or those coming up for lease renewal. I personally believe there is some form of collaboration between the telecoms operators and I know that this is being looked into by industry representatives.

Market rents are under pressure and lease renewals are now becoming increasingly difficult to achieve terms which provide protection for the landlord should the tenant wish to terminate early.

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For those interested in wind power, I would recommend looking at our dedicated website, gfwwind.com for background information, we will be updating regularly.

Tom, Benna and I look forward to meeting you over the forthcoming year, we shall be at the various agricultural shows and please do feel free to call in to the new office at any time or call us on 01430 876 010.

Louis Fell is a partner at chartered surveyors George F. White who operate throughout Yorkshire. Contact www.georgefwhite.co.uk

Related topics:NorthumberlandNorthEast YorkshireMarket Weighton