About Cell Phone Tower Lease
There needs to be proper evaluation and appraisal of cell phone tower lease to get fair market value. 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 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.
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. Because of the innovating and constantly advancing cellular technology and wireless carriers who may collaborate in the future, it causes the cell tower lease to lose value in the process. This tactic they do makes them target landlords and offer them to buyout their cell tower lease for a low 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? Many people these days are bandwidth hogs given the fact that they all have easy access to the internet using their smartphones. This has actually forced various carriers to meet the higher capacity load which translates to more tower leases.
The best possible thing that could happen here is if a reputable and well known investment group has reached out to the landlord and give them an offer. As a matter of fact, wireless capital investors look forward to acquire specific tower leases in an effort 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 is due to the reason that these are the deals that take advantage of uninformed landlords. On the other hand, you should be aware that even the lease buyouts provided by bigger players in the industry have to be evaluated and reviewed thoroughly.
A question that commonly asked by cell site landlords is what lies ahead of them for cell tower leasing? They’re weighing options of either taking chance if they can snag hefty monthly rent checks for their carriers or sell their lease for a lump sum. Like what is mentioned earlier, everything has to be checked thoroughly.