Many of the landowners who reach out to Vertical Consultants do so because they have received mail or phone calls from their cell tower tenant or a third party company. These companies tell the property owner that the industry is changing and the landowner is in danger of losing their cellular antenna site. Often times, these scare tactics work and the landowners immediately sign whatever document is put in front of them. But, many landowners feel something does not add up, and, as a result, they reach out to us. We understand you have come to rely on that monthly rental income from your tower, but we are here to tell you “do not be tricked by these companies!”
Two years ago, Crown Castle acquired the rights to 9,700 cellular towers for $4.85 billion. Many of the landowners who had towers involved in these deals were told they should sign lease extensions through 2099. Landowners were led to believe that due to consolidation issues, their tower may become obsolete. However, after a little math, we can see that Crown Castle just paid, on average, $500,000 per tower site. When you think about the scenario, there are only two possibilities. Either multi-billion dollar companies would pay $500,000 for a cell site just to toss it away, or the pressure to extend or sell your agreement is fabricated to make you act irrationally out of fear.
The sale of 9,700 cell towers to Crown Castle was outdone this year by American Tower, who acquired 11,500 for $5.06 billion dollars, which works out to an average of approximately $440,000 per tower. While the American Tower and Crown Castle transactions were large blips on the industry radar, they represent an overall trend within the industry of tower companies trying to acquire large numbers of tower sites. For example, just this year, Melody Capital has purchased 900 towers, and Grain Management purchased 100 towers. The landowners affected by the cell tower transactions should expect to be contacted regarding renewing their leases long-term, and should expect to hear the same fear-inducing pitches about how their site may soon become unnecessary to their network.
So again, if cell towers were about to become obsolete, why would the industry leaders be investing billions of dollars to acquire the rights to your cell tower? Do not fall for these pressure tactics. The answer to this situation is that technology is nowhere near close to finding an economic and reliable replacement for cell towers, and your individual site has value to the acquiring company. If you are asking yourself why you receive so little a month when these towers are worth half a million dollars to your tenant, then welcome to our world! Vertical Consultants has been telling landowners for years that they are being severely underpaid for their cell tower sites.
If you are contacted by a tower company, a communications company, or a lease buyout company, they are trying to secure rights in your asset because your cellular site has untapped economic potential. The tower companies and telecom companies want to stop this potential from being realized by buying your rights, or extending your lease until the next century. The lease buyout companies want your lease so they can negotiate new terms and be handsomely rewarded for the work you did not have the foresight to do. At Vertical Consultants, we want that untapped value to go to you. Over the last year, on average, we have more than tripled out client’s rental revenues.
Call today for your free consultation and for more information on how industry transactions might affect you.
In 2018, Vertical Consultants averaged an immediate 305% increase in rents being received by its clients, and since 2010, has been able to assist its clients in the recovery of over 300 years worth of combined underpaid, and, in some cases, unpaid rents and other expenses that were rightfully due to these property owners located throughout North America.