“Towering genius disdains a beaten path. It seeks regions hitherto unexplored.” — Abraham Lincoln
Do You Need A Cell Tower Lease Buyout Calculator?
Welcome to our cell tower lease buyout calculator page, where you’ll find everything except an actual calculator. Why? Because you don’t need one, and it’s foolish to use one to determine the value of your lease buyout transaction. If you’re a cell tower property owner and you are wondering about what the real value of your cell tower income stream is, if you sell a telecommunications easement, or what the telecom lease buyout offer is worth, and you need to know how to determine if the cell site lease buyout offer you were given is top-notch, good, mediocre or bad, there is no substitute for speaking with somebody who is an actual cell tower buyout subject matter expert. If you’ve decided to sell your cell tower rental stream and you are looking for a company or consultant to help you that knows the buyout industry inside and out, you want to make sure the expert that you turn to can be trusted and has your best interests in mind, and that they can help guide you obtain top dollar when you sell your cell lease tower easement. Forget the lease buyout calculator — talk to Tower Genius!!
Talk to a cell tower lease buyout expert instead.
CELL TOWER BUYOUT OFFER 101:
Cell tower landlords, here is the 10-second lease buyout offer evaluation method you need to start with. They typically use annual cell site rental income multiples, not cap rates. Calculate the multiple (X) of your cell tower lease buyout offer by dividing it by your annual rental income.
* Lease buyout offers of 17.5X or higher = above average.
* Lease buyout offers of 16X or lower = below average.
Cell tower lease buyouts are calculated differently than commercial real estate. The wireless industry doesn’t use cap rates when making lease-purchase offers. Often commercial developers will ask us what the cap rates on cell tower leases are. When you’re dealing with selling a cell tower rental income stream the buyers are calculating the sales value in terms of multiples of the current annual or monthly rent being paid. A cell tower lease rental stream with a 3% annual rental escalation or 4% annual increase is going to be valued higher than an identical lease where the rent only increases by 7.5% or 10% every 5-year term. Remember how hard the carrier or tower developer fought you over the Right of First Refusal language in your lease agreement if you were the one negotiating the lease? This is why. A ROFR provision drives down the value of the lease when you try to sell it. Cell site leases that do not contain a ROFR provision are more desirable for the investor and landlords will see more competitive pricing from cell tower lease buyout companies who will fight over your easement.
The next biggest issue facing a wireless telecom landlord with a buyout offer is putting your trust in an advisor or a consulting company, and hoping that they will provide you with the help and cell tower lease buyout information that you need. The obstacle is finding one that isn’t getting compensated on both sides of the deal as cell tower lease buyout companies will regularly pay the “lease consultant” assisting you a commission or fee, allowing them to get paid on both sides of a lease buyout transaction. We bet their cell tower lease buyout calculators didn’t tell you that. That is why it is important to select the consultant advising you or your attorney carefully. Tower Genius has no conflicts of interest. We work for you and only for you if you hire us to consult for you regarding your cell tower easement valuation or sales transaction.
“What’s My Cell Tower Lease Buyout Worth?”
- Have you received multiple buyout offers and you have questions? Your attorney or real estate agent golfing buddy won’t know the answers.
- We offer cell site landlords a lease buyout and buyout offer valuation consultation service to help you determine the best strategies if you’ve decided to sell.
- Our consultation can provide you with the pros and cons of selling a perpetual easement to a cell tower buyer, to assist you in keeping the tower rental stream or selling it.
“I Need a Buyout Expert’s Coaching & Guidance.”
- We provide you with the same independent buyout valuation and then provide you and your attorney (if needed) with site-specific recommendations and guidance.
- Our lease buyout transactional coaching and consultations help you to tie up loopholes in your easement while maximizing value to its fullest.
- We’ll work closely with your attorney and your 1031-exchange qualified intermediary (QI) if needed to help you expedite the cell tower buyout process and meet deadlines.
And Exactly What is a Cell Tower Lease Buyout?
This is what a cell tower lease buyout is, according to Tower Genius.
A cell tower lease buyout is a purchase of a cell site landlord’s interest in an existing wireless telecommunication lease income stream and future rental payments, occurring when the purchaser (Lease Buyout Company) is sold an easement by the property owner, giving the purchaser acquiring the lease the rights to receive future payments, and the renegotiate the lease upon renewal. The lease agreement is then assigned from the property owner to the cell tower lease buyout company. The buyers of cell tower leases are usually cell tower management companies, REITs or boutique hedge funds that have a specialization in acquiring digital infrastructure assets such as cell towers and cell sites.
When a cell tower lease buyout transaction occurs, typically the land underneath the cell phone tower, or the building on which the cell site is installed, is not sold. The property ownership does not change. However, there are few lease buyout companies that will occasionally purchase the land along with the tower and the lease, or purchase the building, along with the rooftop cell site lease rental stream.
Talk To Us About Selling Your Cell Tower Lease!
If you are getting ready to pull the trigger on a cell tower or cell site lease easement offer, make sure you get a second opinion from the cell tower buyout consultants at Tower Genius.
Forget the cell tower lease buyout calculator and either call us at 1-888-313-9750, or fill out the form below before you sell your cell tower easement.
Contact Us
We would love to hear from you! Please fill out this form and one of us from Tower Genius will get in touch with you shortly.
Forget the lease buyout calculator.
STILL LOOKING FOR A CELL TOWER LEASE BUYOUT CALCULATOR TO DETERMINE YOUR CELL SITE’S VALUE?
Q: Hey Tower Genius! I’m ready to sell my cell tower lease! Why don’t you have a lease buyout calculator on your site?
A: Because we’ve never needed one and neither do you.
Every cell site lease buyout offer and perpetual easement must be carefully looked at on a site-by-site basis. A cell tower lease calculator can’t evaluate a cell site or a communications site lease agreement. It’s challenging, people with cell towers or cell sites on their property can’t be expected to know all the facts about their cell site’s real value. Cell site lease buyouts might be the biggest financial transaction of most people’s lives other than the purchase of a house. Don’t leave it to chance and base your cell tower easement sale on a calculator.
Another problem that exists, is that many of the other wireless consulting companies that advertise themselves as “cell tower lease experts or advisors” in this industry either have conflicts of interest (getting paid on both ends of the deal) or they misrepresent their actual years of wireless industry experience on their websites. If the integrity of your cell tower lease buyout consultant and transactional coach is important to you, we hope that you choose us to assist you.
You need a cell tower lease buyout expert with no conflicts of interest.
Tower Genius can help you figure out what your cell phone tower lease buyout is worth.
A cell site lease buyout calculator can’t analyze a cell site location or read your lease agreement, and it can’t determine how the carrier’s coverage is deployed surrounding your property. If you have decided to sell your wireless telecommunication lease easement in exchange for a one-time payment, we can provide you with the guidance and expertise you are looking for to make sure the transaction is successfully expedited. If you are selling a rooftop cell site or other telecommunications perpetual easement as a part of a 1031 exchange we can work with your Q.I. and your attorney to coordinate with the cell tower lease buyer to make sure your lease buyout is not only maximized but that your property interests are protected. If you need a second opinion about a cell tower lease buyout offer you have received or you need a buyout offer valuation or any additional guidance, you can benefit from the value we add
Throw out your cell tower calculator and Contact Tower Genius about your cell site lease buyout.
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“The best way to establish long term value for clients is to do today’s work superbly well.”
“The only thing uglier than an ugly cell tower, is an ugly cell tower lease agreement.”
“We’re not saying that we are the best cell tower lease experts in the United States, we’re just stating the obvious, that we haven’t spoken with any that were smarter.”