How to get the most of your Cell tower lease buyout

A Cell tower lease buyout can provide cell site owners with a large lump sum of cash while eliminating the risks inherent from owning a cell tower lease. When a landowner decides to take a lump sum for their lease, they should review both the amounts being offered and the terms and conditions of these offers.

At first glance, many of the offers will appear to be similar with regard to the lump sum payout amount but they may vary widely when it comes time to review the terms and conditions of these offers. Until you perform a cell site analysis and review your current lease, there is no way to maximize your cell tower lease buyout.

Major items that you need to cover in a review are:

1. Review your original cell site lease and all its amendments if any.

a. Determine the monthly rental amount

b. The escalation values

c. The initial lease date and the termination date

d. Termination and breach of lease clauses

2. Perform a physical inspection of your site:

a. Any violations of the area leased versus the area being occupied.

b. Whoare the current tenants on your tower?

c. Takephotos to help document your findings.

3. Review surrounding structures in the area:

a. How your cell site falls within the network of the tenants on your tower.

b. Does the potential buyer already have a structure near your site?

4. Review the potential buyers complete agreement:

a. Most buyers will reluctantly provide you with their agreement.

b. Many times the actual agreement does not match their offer letter.

c. Many times their offer letter will tie up your property before you have reviewed their agreement.

d. Most items in their agreement are negotiable.

Now, that you have established a better understanding and value of the asset you wish to sell, you can now make a better decision.

Some important factors that will impact your decision are:

1. Who maintains the leased area after the sale?
2. How this could impact your ability to sell the rest of your property later
3. Who is responsible for the Real Estate taxes?
4. What happens if there is a breach of the lease now that you don’t own it
5. Are you giving the buyer the right to sublease?
6. Is this a perpetual easement or a fee simple agreement?

Overall, the more you understand your cell site lease, the more proceeds you will realize from a cell tower lease buyout. If you did not have a clear understanding of your transaction, we can provide assistance.

Our firm has reviewed 1000's of cellular lease agreements and closed 100's of transactions regarding Cell Towers, rooftop leases, steeples, rent reductions, lease amendments, ground leases, new site negotiations and buyouts from various organizations.

We know the pricing of all the major companies in the industry and I have dealt with them on many occasions. We can provide a complete review of all offers plus educate you on options available to you as a Landowner.