As a cell tower landlord, you might be receiving numerous calls and offers for lease buyouts from various tower companies. You need to consider two primary objectives when contemplating a cell tower lease buyout offer. First, you need to ascertain if a buyout aligns with your best interests. Second, if a buyout is indeed the right choice, you shouldaim to secure the highest possible purchase price while safeguarding your interests and property from any adverse terms.
Here’s our answer guide for your essential questions about this negotiation process to maximize your earnings.
What Is Cell Tower Lease Buyouts?
A cell tower lease buyout occurs when a landlord chooses to sell their lease, including the rights to collect future rental income, for a specified duration. This duration can vary, ranging from infinity to shorter periods like 99 years or 50 years. In exchange for this, the buyer typically provides a lump sum payment or multiple installment payments.
Why Do Property Owners Opt For A Cell Tower Lease Buyout?
Well, it often boils down to financial priorities. Some need quick cash to tackle immediate expenses like medical bills, education costs, debt reduction, or taxes. Others see it as an investment opportunity, using the cash to venture into real estate or business expansion. Many of our clients discover that investing the proceeds from a cell tower lease buyout can yield substantial long-term growth, surpassing their cumulative monthly rent payments.
How Do Buyouts Usually Work?
In a typical buyout, the property owner grants the tower company a long-term easement, which can range from 50 years to a perpetual right to use the property. Offers usually come as a one-time cash payment, which can be substantial, reaching from hundreds of thousands to millions of dollars, depending on factors like your current rent and lease expiration date.
If you’re in need of quick cash, a buyout can be an attractive option to secure a significant sum promptly.
What to Do When Contacted for a Cell Tower Lease Buyout?
First and foremost, don’t rush into any deal with companies seeking to buy your lease, whether it’s your current tenant or a third-party buyer. Remember, their goal is to maximize their profit, and if they can convince you to sell for less, it’s more money in their pocket. This is where an independent cell tower lease buyout consultant, equipped with the necessary legal and business expertise, can offer valuable guidance.
Should I Get Professional Help?
Absolutely! Having professional guidance is crucial in this process. Most cell tower lease owners aren’t experts in the intricacies of cell tower buyouts or the true value of their leases. As one of the leading cell tower lease consultants in the USA, Tower Genius can assist you in assessing your offers and offer the advice you need to get the most out of your deal. We can even support your attorney with the finer details of the transaction that they might not have dealt with before.