Structuring a Cell Tower Lease Buyout

July 27, 2008

Have you received an offer recently to sell out the monthly payments of your cell tower lease in return for a one time lump sum payment? It has been reported that many tower companies like Global Signal and Crown Castle have been contacting owners and offering them one time lump sump payments in lieu of the monthly rent payments that is being paid to the landowner under the terms of the lease agreement. With the industry consolidating and since most cell tower lease agreements are written in such a way that the tower company or the wireless carrier can terminate the cell tower lease without any penalty by just providing a 90 days notice, it might be beneficial for landowners to go for a one time lump sump payment in lieu of monthly payments.

However, those going in for such settlements need to make sure that the deal is properly crafted and he/she is not ripped off by the wireless carrier or tower company. This is where the services of a good, reputed intermediary who has quite a lot of experience handling cell tower lease buyouts, comes in handy. So make sure you consult an expert before going in for such a deal.

Posted in US Real Estate