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The Different Aspects of Cell Tower Lease Buyouts

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Owners of wireless leased properties who are contemplating cell phone tower lease buyouts should determine their requirements of cash against money in future. The fair market value of cellular leases needs to get evaluated and appraised. An average real estate appraiser is not expert in procurement of cell phone tower leases.

Cell Tower Lease Valuation

Valuations of cellular leases and offers for purchasing leases vary broadly depending upon several influencing factors, including:

  • Lease values of wireless carriers
  • Location of cell tower site
  • Whether the cell site allows payment of rent by additional carriers
  • If the terms of cell tower leasing are favorable to the lease buyer
  • Credit worthiness of seller
  • Whether the cell tower lease matches requirements of the buyer
  • Aggressiveness of the tower portfolio buyer

Dynamics of Leasing Cell Towers

Wireless landlords are usually presented with many low-value offers of cell tower lease buyouts. Certain financial institutions that purchase cell tower leases take blatant advantage of them. They do this by sending letters that evoke doubt in their minds concerning the usefulness of their sites in future. The premise of such arguments lies on projected loss in value of cell site leases arising from possible mergers in-between wireless carriers, as propelled by advancing cellular technology. Preying on fears of landlords in such circumstances, they end up acquiring cell tower leases at unfair prices.

Cashing out of a cell phone tower lease just for fear of it becoming obsolete is never a prudent undertaking. Cell tower leases of poor valuation do not usually attract the attention of buyers. It is important having in mind that carriers require improved capacity for handling their bandwidth load.

Cell tower landlords get presented with offers of cellular lease purchases by professional managers of wireless lease portfolios that represent a reputable investment segment. The wireless capital investors look for specific cell leases when seeking expansion of their portfolios. Buyout deals from wireless financial services funds have the tendency of availing better deals compared to the bottom feeders within the industry, keen on taking unfair advantage of uninformed landlords. That said, even the lease buyouts offered by larger, established investors of wireless lease portfolios, offering remarkable cell site lease rates, should be evaluated and reviewed.

The Future of Leasing Cell Phone Towers

The primary concern that a majority of cell site landlords should have is what the future has for leasing of cell towers. This involves weighing the various options of whether to sell the leases for cash in lump sum or taking chances to see whether they will be capable of collecting huge monthly rent checks for cell phone carriers. Europe is a reliable indicator of what the future holds for wireless leasing, especially because of their wireless networks or infrastructure that are constructed in a far better way than the average cellular networks.

The secret to negotiating cell phone tower lease buyouts with success is first gaining the understanding that wireless leases are valuable commodities perpetually. They will most likely remain intact in value in spite of internal dynamics happening within the cellular industry at large. It is critical to also engage prospective buyers only upon performing proper background research.

Owners of wireless leased properties who are contemplating cell phone tower lease buyouts should determine their requirements of cash against money in future. The fair market value of cellular leases needs to get evaluated and appraised. An average real estate appraiser is not expert in procurement of cell phone tower leases.

 

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