A cell tower lease buyout is when a company pays a property owner a lump sum for the right to future cell tower rents. A property owners needs to understand the “Real Value” of their cell tower lease before any buyout deal. The wrong lease buyout deal can cost you money and possibly devalue your property.
Cell tower lease buyouts are a necessary part of the industry. Cell towers have been raised all over America, and each tower stands on someone’s land. The land owner has the ability to control the lease, or the lease may be handled by a separate entity. You may read further to learn about cell phone tower leases and their management.
Does a Cell Tower Lease Buyout Also Sell My Land?
No, a cell tower lease buyout does not sell your land, just the tower. Every land owner has the right to accept a cell tower lease buyout without selling their land. It is important to understand in a cell tower lease buyout, you will still own the land. The land owner likely was the first leaseholder, and the lease was passed on to someone who wanted to manage the tower. The tower itself is valuable to the company that owns it, but the land owner is the person who holds the rights to the lease. You may not be the land owner, but you may hold the lease on the cell tower if it is sold to you. The parcel where the tower sits is private land. The land owner has simply allowed a company to build a cell phone tower on it. Leasing or subleasing the tower is the only thing that may be done on the property, and the property is likely developed in other ways. A cell phone company is not leasing the land along with the cell phone tower. The tower is a single entity that is leased to the interested party.
Are Cell Tower Lease Buyouts a Good Idea?
A cell tower lease buyout refers to a telecom company offering to pay a property owner a lump sum up front in exchange for the right to receive all future cell tower rents. A property owners needs to understand the “Real Value” of their cell tower lease before accepting a buyout deal. The wrong lease buyout deal can cost you money and possibly devalue your property.
Who Can Make a Cell Tower Lease Offer?
A cell tower lease buyout may be conducted by any company that wishes to manage the tower. The lease could change hands several times over the years, but the owner of the land may transfer the lease to anyone they please. The owner of the parcel is paid for the tower leasing rights, and the company that makes the purchase must pay the land owner for the rights to the parcel.
How Are Cell Tower Buyout Prices Affected?
The sale value of a cell tower lease buyout is determined by 3 main factors:
- The price of the land where the cell tower sits
- The network location of the cell tower
- The fluidity of cell tower lease market prices
Market prices for communication technology such as cell towers can change daily. A cell phone tower value changes with the market demand. As market prices or market demand increases, the value of a cell tower leases will also increase, and as market demand falls, cell tower lease values will also fall. Due to the changes and advancements in mobile phone technology, and the strong growth in the data plan usage, the market demand has continued to remain very strong.
Are Cell Tower Leases Revisable?
Leases are typically renewed every year, and you may choose to approach your lessee with new prices every year. You are in control of the rent paid for the rights to the tower on your property, and you must find a company that is willing to pay for the rights to the tower.
Every land owner with a cell phone tower must understand how leases are transferred. You are not selling your land, but you are selling the rights to control the cell phone tower. Since the market impacts lease prices, you could make extra income from the tower lease moving forward.
Do You Have a Cell Tower Lease Buyout Offer?
The first thing you should ask yourself is; what’s your bargaining power? If you are currently leasing space to a cell tower company or cell phone company, more than likely you have been contacted by a private company like: American Tower, Wireless Capital Partners, Unison, AP Wireless, or other similar companies looking to buy your cell tower lease.
You are most likely asking yourself, “Why are these companies contacting me?” and “Why won’t they stop calling?” Let us shed some light on that for you. Companies like the one mentioned above are looking to purchase the cash flow from your cell tower lease at a discount.
Companies like the one mentioned above are looking to purchase the cash flow from your cell tower lease at a discount. They make money the old fashioned way, by making money off the assets of others. These companies offer deals that are usually structured based on a one-time, lump sum payment, to be paid to you, the landowner.
How do cell tower lease buyout companies structure their agreements?
- Buyout companies want the right to collect the cell tower rents you are currently receiving under the terms of your present cell tower lease
- The cell tower buyout company will expect the right to control your current leased area by way of a long term or perpetual easement.
Why a Cell Tower Lease Buyout Company Incites Panic?
Many lease holders we’ve spoken to have told us the buyout companies tries to create a state of panic. This is one of their tactics. Their goal is to make you more likely to dispose of your cell tower lease.
How Cell Tower Lease Companies Create Panic?
- They suggest future technologies such as mini or micro cell phone towers will make your cell tower or rooftop equipment obsolete;
- The end is near, meaning that a near term termination of your tower lease is eminent; or
- These same companies seeking to buy a property owner’s cell tower lease will imply there is a pending cell tower consolidation.
If you do wish to sell your cell tower or rooftop lease, we can work on your behalf to optimize the net value you receive. We have years of experience in determining what the true value of a cell tower lease is, and what a third-party should be paying for such an asset.
877-456-7552. Vertical Consultants 4005 Aberdeen Suite 100 Nashville, TN 37205 http://www.youtube.com/watch?v=HHvhFnHjCrY">
Vertical Consultants will provide you with expert representation that will include not only negotiating on your behalf the maximum buyout for your cell tower lease (in some cases we have been able to garner up to 100% more than originally offered), but we will also assist you in the negotiation of all documentation associated with such a transaction to make sure you not only get the most, but give up at the least. The company buying your lease has experts on their side trying to make the best deal for them, shouldn’t you have the same?
We encourage you to contact us today to discuss any cell tower lease buyouts you receive. We will be glad to discuss what services Vertical Consultants can provide you.