In a recent article on seekingalpha.com, they highlighted the thriving business of the cell tower industry. Their article points out the fact that while other real estate rent markets are struggling due to COVID-19, the cell tower market is booming. They offer substantial evidence to support their article, which you can find here, and we have included a summary of the article below. We have also written multiple articles about 2020 and why it’s a great year for cell tower leases, which you can find on our Blog.
Summary of REITs article on SeekingAlpha website:
- As fears over missed rent payments rattle the real estate sector, Cell Tower REITs are not just surviving, they’re thriving. These REITs are one of the few in positive territory.
- Cellular network usage has surged amid the stay-at-home orders as businesses and individuals stay connected via virtual interaction. Signs of stress in capacity enforce the need for additional network investments.
- The long-awaited marriage between T-Mobile and Sprint has finally come to fruition. The emergence of a fourth competitor – Dish Network – was an unexpected coup for cell tower REITs.
- The market is understanding what we’ve said for years: low-band, wide-coverage macro tower networks will be the “hub” of 5G service due to the logistical challenges of dense small-cell networks.
- Fundamentals remain stellar, which are reflected in the sector’s premium valuations. Low-orbit satellite technology – backed by SpaceX and others – is a competitive threat to keep an eye on.
What Does This Mean For You?
The real question for cell tower lease holders and property owners is: what does this mean for you?
There are a few specific ways this could impact you that we want to highlight:
- More Lease Buyouts
- Cell tower lease buyouts are surging right now as tower companies look for ways to capitalize on the existing environment. Click the link above for additional information and tips if you’ve received a buyout offer.
- 5G Means More Money
- As previously reported by Motley Fool, the 5G expansion has meant record earnings for cell tower landlords (tower companies). Unfortunately, that additional revenue has not always made it to the property owners. We’re looking to change that. Click here for additional details.
- Rent Reduction Letters
- Tower companies are sending out record numbers of rent reduction letters to lease holders. They are attempting to take advantage of the uncertainty of our economy, but don’t sign one of these without talking to us first. It may be a ploy to get you to accept less than you deserve.
- The Value of Existing Leases
- Existing leases are still incredibly valuable and you should take every step to ensure that you’re getting the best terms possible. We offer a free lease review and consultation – with no obligation. If we can help you, we will tell you how. Our clients average an immediate increase of over 300% on their rent. You could be next.
Contact us today to discover the true value of your property and get the lease you deserve. We are operating at full capacity during COVID-19, while continuing to protect our experts and clients.
The cell tower companies have experts on their side. Shouldn’t you?