Lessons Learned About Cellular
Some Tips on How to Negotiate Cell Tower Lease
A landlord of wireless leased properties has to determine cash necessity of the present and the need of money in the future, if there is a plan for a cell tower lease buyout. The fair market value has to be appraised and evaluated where cellular leases are concern. However, an average real estate appraiser is not familiar with cell phone tower lease procurement nor an expert in cell tower lease. Note that there are several influencing factors that differ in cellular lease valuations and lease purchase.
Let us enumerate some of the factors that would affect the cellular lease valuations and lease purchase, and conditions could be about the values of the wireless carrier lease, if the cell site allows more than one to pay the rent, if the conditions are in favor of the cell lease buyer as far as the cell tower leasing agreement, where the tower site is located, the credit worthiness of the cell tower seller, if the cell tower lease terms match to that of the buyer’s requirements, and the aggressiveness of the portfolio of the tower buyer.
Sadly, there are only a few cell tower lease buyout offers for the wireless landlords. This is because the advancing cellular technology and wireless carriers merging that can cause tower leases to lose their values leading cell tower lease purchasing financial firms to take advantage of the situation and the wireless landlords.
It is therefore better for the cell tower landlord to deal with a professional wireless lease portfolio manager, who represents a reliable investment company, when it comes to cellular lease purchase offer. Because these wireless capital investors are seeking to acquire certain cell tower leases so that their portfolios will expand, will offer buyout deals that will be better deals than others who would take advantage of a landlord with no knowledge of the industry situation. Other larger and established wireless lease investors would also offer big cellular lease buyouts, and yet have to be reviewed still and be evaluated.
And so these site landlords are pondering what is in store of their cell tower leasing business, and if they will sell their lease for one time big money or have it leased by some cell phone carriers.
If a country has a good wireless infrastructure and networks, then this is a good indicator of the future of this wireless leasing industry. It is advisable for one to have a successful cell tower lease buyout terms to understand that the wireless industry where you belong has value and that it will not be gone in the future just because of some new innovation or mergers.
Reference: additional reading
Comments are closed.