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Everything You Need To Know About Cell Tower Lease Buyouts

Everything You Need To Know About Cell Tower Lease Buyouts
  • Do you have questions about cell tower lease buyouts? Are you hoping to get answers from an industry expert?
  • Are you considering selling your lease? Worried you might not get fair compensation?

We’ve got the answers you need! Tower Genius is one of the most trusted and sought-after cell tower lease buyout companies in the country, and every day we get questions about what we do.

In this guide, we answer all the common questions individuals have regarding cell tower lease buyouts, and with this information you can ensure your lease gets bought out for a fair amount. There’s a lot to cover, so let’s begin!

Cell Tower Lease Buyout FAQ

1. What is a cell tower lease buyout?

A cell tower lease buyout is when one party purchases the rights to a cellular tower lease from the landlord. Usually, the following factors are involved in a buyout:

  • A seller – This is the building owner or landlord who is currently leasing the site to the cell tower company.
  • A buyer – This can be a wireless network provider, a cell tower company, or a cell tower lease buyout firm.
  • A lump sum payment – This is the amount paid at closing; it’s usually a multiple of the annual rent.
  • A long-term easement – This transfers the right to collect rent from the cell tower company to the buyer.
  • How Much Is My Cell Tower Lease Worth?

Remember, there’s no single number that applies to all situations. That said, a general rule of thumb is to multiply the annual rent by 17. The value you arrive at is the approximate value of your lease. Keep in mind that this figure is a rough estimate, and the actual value of your lease might be more or less (depending on other factors).

2. What Are the Factors That Determine the Value of a Lease?

Not all cell tower leases are created equal. Some are worth more than others. The value of your lease is determined by several factors, including location and the level of escalation. For example, leases that have higher escalation are worth more. If your cell tower lease has an annual escalation of 3%, it’ll be worth significantly more to the cell tower company, and you should be compensated accordingly.

3. Should I Opt for a Cell Tower Lease Buyout?

Coming to a decision on this question can be tough. Before you go for a lease buyout, weigh the pros and cons so you can make an informed decision.

When to Keep the Lease

  • You do not require the lump sum payment immediately.
  • The risk of termination is low.
  • If the lease is undervalued, and there’s less than 15 years till expiration, you can extend the lease instead of selling it; negotiate a higher lease rate when you do.

Remember that even after you sell the lease, the cell tower company will have legal access to the property and equipment.

When to Choose a Lease Buyout

  • You plan to sell the property and do not want the cell tower to hinder the sale.
  • You’re in dire need of a large lump sum payment; the money you receive from the buyout could be used to get you out of a financial bind.
  • You’re planning to liquidate your assets after a divorce or for estate planning purposes.
  • The lease could be terminated in the future. In this case, it makes sense to cash in with a lump sum payment instead of risking it all.
  • You’re tired of dealing with calls and negotiations that go nowhere.
  • What Should I Watch Out for When Selling the Lease?

We can help you negotiate the buyout. But, if you’re doing it alone, make sure you:

  • Compare Offers: This way you have a clear idea of what the lease’s market value is. With this knowledge, you can more easily choose the best offer.
  • Don’t Fall Prey to Scams: Every day there are scammers out there who are waiting to take advantage of vulnerable landowners. Do not be misled by big claims. Do your due diligence to find the best option for you.
  • Ask for a Copy of the Easement or Lease Assignment Letter: Review carefully before you sign.

If you need help with negotiating a cell tower lease buyout, connect with Tower Genius. Our experts can help you save thousands of dollars, and they’ll work with you so you profit handsomely from this transaction.

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Carriers & Tower Companies Have Their Hired Guns. Shouldn't You?

Negotiating a cell tower lease, trying to figure out what the correct cell tower rent value for your property needs to be, or evaluating the broad range of proposals and offers received by most cell site landlords in 2022 can be very confusing. Connect with Tower Genius or submit your info below, and we'll evaluate your situation, answer your questions and even make a few recommendations you may benefit from.

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