How to Get Good Deals on Your Cell Phone Tower Lease?
The fair market value of cell phone tower lease ought to be evaluated and also, appraised. The problem that most landlords deal with here is that, average appraiser isn’t much of an expert with regards to doing tower lease procurement. There are various factors that are affecting cell tower lease purchase as well as valuations and these are the cell tower leasing terms favorable for lease buyer, how aggressive is the buyer’s tower portfolio, wireless carries lease values, does the cell site enables extra carriers to pay rent, location of the tower, seller’s credit worthiness and also, if the cell tower has matched the buyer’s requirements.
The sad thing is that, a lot of cell phone tower lease buyout offered to wireless landlords are quite low. 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. This is a result of advancing and innovating cellular technology as well as wireless carriers who might merge which cause the tower lease to ultimately lose its value. They are preying on the landlord’s fears and acquiring the cell tower lease at rock bottom price.
It just doesn’t make sense that you have to cash out of cell phone tower lease all because you are afraid that sooner or later, the tower will be obsolete. If it really has no value, then why would they ask you to sell it to them? These days, smartphones are growing day by day since many more people are bandwidth hogs. In return, this forces the carriers to increase their tower leases to meet high demand of their customers.
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 seek to get specific tower leases to be able to expand their portfolio. The buyout deals from the wireless financial service funds have a tendency to provide better deals compared to industry bottom feeders. It’s because these are the kinds of deals that are taking advantage of uninitiated 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. Regardless of what your decisions are, you have to ensure that it is thoroughly reviewed.