Cell Phone Tower Lease
The fair market value of cell phone tower lease ought to be evaluated and also, appraised. The problem here however is, your average real estate appraiser is often not an expert in 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.
But you’ll be surprised to learn that most wireless landlords are offered with a low cell phone tower lease buyout. Some portion of the lease buying financial institutions take advantage of sending letters and wireless landlords which causes doubts 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. They are preying on the landlord’s fears and acquiring the cell tower lease at rock bottom 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. In case that the lease had no value, then why would they be asking 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. In return, this forces the carriers to increase their tower leases to meet high demand of their customers.
Best case scenario here is, the deal falls in the landlord’s favor when they are shown with lease purchase offer by a well known investment group. As a matter of fact, wireless capital investors look forward to acquire specific tower leases in an effort to expand their portfolio. There is a tendency to get far better deals from the buyout offers from wireless financial service funds than industry bottom feeders. The main reason for this is that, they take advantage of unacquainted landlords. While the buyout offers made by these companies are seem reasonable and fair, still you need to make sure that you have taken the time to review it to ensure that you are not being tricked.
A question that commonly asked by cell site landlords is what lies ahead of them for cell tower leasing? They weigh options to either take the chance to hold on it and hope that they can get a large monthly rent check or sell it for a lump sum. Regardless of what your decisions are, you have to ensure that it is thoroughly reviewed.