Before You Extend or Sell Your Cell Tower Lease Agreement – Get Advice That Doesn’t Suck… Tower Genius’ Guide for Property Owners.
Here’s the ugly truth about so called cell tower lease consultants and experts you should consider before you extend or sell your cell tower lease agreement. A lot of them suck. They are not honest people. They do not have the years of experience they claim and they have major conflicts of interest. You would not bring them over your house for a family dinner.
Are you a property owner who already has a cell tower on their land? Are you collecting a monthly rent check from Verizon Wireless, T-Mobile, Sprint, AT&T, American Tower, Crown Castle or SBA Communications? Still getting bombarded with proposals every month to sell your cell tower lease rental stream as a perpetual easement buyout for a lump sum? Should you give the tower management company another 10 20 or 50 years? Or should you cash out and take the lease buyout and put the money into another type of asset to mitigate the risk of having your rental stream become obsolete due to 5G or some future cell tower satellites orbiting thee earth?
Most tower management forms like SBA, Crown and ATC will offers to either extend your lease for 30-50 years or buy your out of the lease for a one time payment. When a half million dollar carrot is dangled in front of a cell tower landlord while this may seem enticing, the options should be weighed. Don’t expect an attorney or real estate agent or commercial real estate appraiser to know the first thing about providing you with a proper cell tower lease valuation. Tower Genius absolutely can. Just call us at 888-313-9750 to learn more about what value we can add for you with our strategic coaching and lease consulting services.
As a cell tower landlord it is always good to get a second opinion. Before you extend or sell your cell tower lease agreement and before you sign on the dotted line to extend you cell tower contract, ask yourself…
Is This Cell Tower Extension Or Easement Sale Good Deal?
- We’ve been doing this a long time, in almost all instances, initial cell tower lease purchase or extension offers are not going to the best deal for you financially, rather they are the best deal for the company making the offer. You need to figure out who much meat is on the bone and how much leverage you have or do not have.
- Only you can decide if you should sell the lease and allow the tower company to buy out your lease or give them more time when you amend the contract. Ask a CPA about your tax burden if selling a cell tower easement for a one time payment.
- Because cell tower transaction are so esoteric in nature and have so many other moving parts when compared to a typical real estate transaction, it pays to hire a cell tower consultant like this one, Tower Genius, to coach and consult for you while your cell site is under negotiation.
Cell Tower Lease Buyout and Amendment Documents Can Be Complicated
- The cell tower leasing industry has had 30 years of lawyer intervention and each time an attorney comes up with a clever way to pull a fast one on a landlord, in eventually permeates its way across the entire industry. Cell tower leases agreements are constantly evolving every year. There has mot been a year since we launched our consultancy on 2008 that we did not see changes to ground lease and rooftop lease agreements used by Verizon Wireless, AT&T, Sprint, T-Mobile, Crown castle International, American Tower Corporation or SBA Communications. The bottom line is that most of these lease buyout and lease amendment documents are terrible. The leases are one-sided and contain provisions that are purposely difficult to read and comprehend. Before you execute a cell tower extension, lease buyout or easement agreement talk to a cell tower lease expert at Tower Genius LLC. You’ll thank us!
Just About Everything in a Cell Tower Agreement is Negotiable
- Lowering your risk when negotiating a cell tower lease extension is possible by obtaining a signing bonus, option payment or other up-front compensation that is equal to or exceeds your cost of reviewing the document. If you hired an attorney for example that charged you $10,000 to review your contracts you’d better make sure that they knew what they were doing (many cell tower experts sadly do not have much experience or have conflicts of interest) and that you lower your exposure by obtaining as much of that fee from the tower company or carrier to subsidize your costs as you can. If you are selling a perpetual easement make sure you are getting the maximum value for the sale of your rental stream. Are you?
And of course if you have been approached by a cell tower development company or wireless carrier with a proposal for a new a lease agreement, don’t just sign anything they have to offer. Get in touch with Tower Genius for a review of the deal. We have been coaching and consulting exclusively for landlords and property owners since 2008.
Call Tower Genius from anywhere in the USA at 1-888-313-9750.