Cash Now or Cash Flow? Modeling Lump-Sum Buyouts vs. Keeping the Lease for 20 More Years
If you’re a landowner currently in a cell tower lease who is considering a cell tower lease buyout, you’re definitely not alone. You may be asking yourself, “Should I sell my tower lease for a lump sum?” This is a decision many landowners have faced, and it’s important to weigh the benefits and drawbacks of each option. This becomes even more important when you’re looking at an appealing buyout offer in hand from a telecommunications company. At Cell Site Advisors, we are here to help you navigate the process and determine what is best for you. Let’s talk about some of the things we consider during a decision-making process like this.
Calculating a Cell Tower Lease Buyout Offer
Cell tower lease buyout offers are calculated based on a number of factors, such as future rental income, local demand, lease terms, and tenant reputation. While you may find things like a cell tower buyout calculator online, those calculations aren’t nearly as reliable or accurate as the work we do to bring you the full picture numbers. Our expert analysis at Cell Site Advisors digs into the numbers based on your specific lease, land, and situation to make sure you understand your options and receive a competitive payout should you choose to accept a lease buyout.
Considering Long-Term Lease Value
While taking a buyout is the right decision for some, in all scenarios, it’s important to consider the long-term benefits and value of holding on to your cell tower lease agreement. In addition to running the numbers for a competitive cell tower lease buyout offer, we’ll also look at the alternative numbers for keeping the lease long-term. These numbers include considerations for rent escalation clauses, inflation, market shifts, and other costs associated with the lease.
Identifying Hybrid and Partial Buyout Options
Finally, in some situations, a hybrid offer may be negotiated. This unique offer allows landowners currently in a cell tower lease agreement to collect payment in the present with a designated lump sum amount, without totally giving up the benefits of rental income in the long term. While this type of agreement might not be for everyone, it can be a great option for the right candidate. In the event of negotiating a hybrid lease or partial buyout option, it’s imperative that you seek professional advice and have a good legal strategy to make sure you’re protected over the course of the agreement. Working with consultants like us at Cell Site Advisors means you have the oversight of a team with over 20 years of experience in this industry, plus legal counsel to review the fine details of the agreement we negotiate.
No matter what type of agreement you decide on, Cell Site Advisors is here to support! Book your complimentary consultation with us today.
About the Author
Ted Unkel is a principal at Cell Site Advisors, which specializes in negotiating telecom leases and transactions for property owners. He has more than 20 years of experience in the telecom industry, mostly working in nationwide negotiations on behalf of Crown Castle, a real estate investment trust that works with landowners and property owners on cell-tower leases and real estate infrastructure.