What Is MD7? The Property Owner Warning

MD7: Who They Are and Who Pays Them

MD7 LLC is a lease management and "optimization" company based in San Antonio, Texas. They are hired by AT&T — and occasionally other carriers — to renegotiate cell tower ground leases at lower rates. MD7's business model is a success fee: they earn a percentage of the rent savings they achieve on behalf of their clients. This structure means every dollar they cut from your income is a dollar in their pocket.

MD7 is a legitimate, established company — they are not engaged in fraud. But "legitimate" does not mean "acting in your interest." They are professional negotiators operating on behalf of AT&T, and most property owners they contact do not realize this until it is too late.

What MD7 Letters Look Like

MD7 rent reduction letters are professionally designed to appear official and authoritative. They typically include:

• AT&T letterhead or MD7 letterhead referencing AT&T as the principal
• Your property address and current monthly rent amount
• A "revised rent schedule" showing a proposed new (lower) rate
• A claim that your current rate is "above market" — almost always the opposite of reality
• A stated deadline, typically 15-30 days, to "accept" the new terms
• A signature page and return instructions

These letters are sent in bulk to thousands of AT&T ground lease holders. MD7 knows that a predictable percentage will sign and return them without seeking independent advice. The letters are calibrated to achieve exactly that outcome.

The Truth About MD7's "Market Analysis"

MD7 letters routinely claim that your current lease rate is above current market rate — justifying the proposed reduction. This claim is typically false. In our practice, properties targeted by MD7 are very often below current market rates. When we respond to MD7 reduction requests with our own market analysis showing comparable rates, the reduction attempt fails in the vast majority of cases.

We have seen this play out enough times to have a rule: every MD7 rent reduction request should be treated as a potential rent increase opportunity. Many properties targeted by MD7 have legitimate claims to be earning more, not less.

What to Do Right Now

If you have received an MD7 letter or are being contacted by MD7 representatives:

1. Do not sign anything. The letter has no legal force until you sign. Your current lease rate remains in effect until you voluntarily agree to change it.
2. Do not return the signature page — not even to decline. Written responses can create a record that complicates the negotiation.
3. Contact a cell tower lease consultant immediately. We treat MD7 situations as priority engagements and respond within 24 hours. The consultation is free.
4. Do not take informal calls from MD7. If they call, you can acknowledge receipt of the letter and say you are reviewing it with an advisor. That is all.