"The majority of the time the property owner will remove the equipment and those costs become part of the default," Jason Kaiser, a senior office broker in the Orlando office of Trammell Crow Co., tells GlobeSt.com. "It should not be this way, but typically it is the way it ends up."

Kaiser says "there are a few cases in which independent contractors will install the equipment for the tenant, and if receipt of services is owed after the tenant defaults, then the contractors will file a lien against the building" to make sure he gets paid.

Some property owners are lax in checking out a rooftop tenant's creditworthiness because of the perception that a telecom company's equipment does no daily wear and tear to the roof as there might be from humans working in a suite of leased offices below.

Continue Reading for Free

Register and gain access to:

  • Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.