About Cell Phone Tower Lease
Fair market value of cell phone tower lease must be evaluated and appraised. The problem here however is, your average real estate appraiser is often not an expert in tower lease procurement. There are different factors that affect cell tower lease purchase and valuations and these include wireless carries lease values, are the cell tower leasing terms favorable for lease buyer, does the cell site enables extra carriers to pay rent, location of the tower, seller’s credit worthiness, how aggressive is the buyer’s tower portfolio and if the cell tower matched the requirements of buyer.
But you’ll be surprised to learn that most wireless landlords are offered with a low cell phone tower lease buyout. A certain portion of the lease buying financial institutions blatantly is taking advantage of sending letters wireless landlords which then create doubt in their minds. Cell tower lease may lose in value in the process of merging of wireless carriers and advancing of cellular technology. They are preying on the landlord’s fears and acquiring the cell tower lease at rock bottom price.
It doesn’t make sense that you cash out of the cell phone tower lease simply because of the fact that you’re afraid that your tower might soon be obsolete. If it really has no value, then why would they ask you to sell it to them? Smartphones these days are growing day by day as many people are bandwidth hogs as well. This forces carriers to meet the higher capacity load resulting to needing more tower leases.
The best case scenario which is in favor of the landlord when they’re presented with the lease purchase offer is when it’s presented by a reputable and known investment group. Wireless capital investors are seeking to obtain specific tower leases in order to expand their portfolios. Buyout deals from wireless financial service funds have a possibility to give you better deals in comparison to industry bottom feeders. It is due to the reason that these are the deals that take advantage of uninformed landlords. You on the other hand must be aware that even though these buyouts are proposed by big names in the industry, still you need to ensure that it is reviewed.
One question that most cell site landlords are asking is, what future they do have for cell tower leasing. They are stuck between two options which is either to sell the lease for a lump sum or hold onto it if they can get a good monthly rent. In the end, everything needs to be checked thoroughly.