Cell Tower Lease: Discussing Important Aspects

@ @ @ @@page

Cellular tower lease is a topic of interest for both tower companies and wireless carriers. These companies often contact land owners for leasing out pieces of land, in lieu of which the property owners get additional income for an agreed period of time. The amount paid to the owners varies depending on a number of factors like location, the population density of the locality and more.

There are some property owners which sell their parcels of land to companies, third party investors etc. that are interested in buyout.

Appreciation In Value Nearing The Expiry Date

Cell phone tower lease is different from typical real estate leases for the value associated with former gets to improve over the time. In fact when it is close to the expiry period its value gets better. It happens owing to the costs like deconstruction and relocation that come into play if the lease is not renewed.

Continuing with the existing agreement saves the tower and carrier companies from starting the whole process from the scratch. Cellular lease agreements besides following real estate agreements consider telecommunication agreements too. Both the seller and the investor involved in a lease should be well acquainted with all the provisions for seamless progress of the lease.

Important Cell Tower Basics

Both parties involved in cellular lease should be aware of the fact that the lease encompasses ground lease, which is mutually agreed at the time of getting into agreement. Sometimes leases may include the adjacent grounds too.

Also, cell site lease mostly includes additional clauses like government approvals, construction fees, permits, termination and optional fees and more. While these clauses have a life of one or six months, lease term may extend up to five or ten years and the option for term extension can run up to thirty or fifty years.

There is also cell site lease cancellation provision which allows company or investor to call a quit without penalty. Nevertheless early cancellations are a rare sight, especially when there are multiple tenants in the space.

Property owners should see that leases should bring positive effects on the value of their assets because penalty is levied upon when the rights are transferred to a third party.

Things You Must Lookout For

It should be a win-win situation for both the sellers and the investors or buyers. There are some important things they both should consider so that the value of the real estate behind the lease remains unaffected. Of course the rates you get for the lease top the list but there are more to think about such as:

Right of first refusal affects the cash flows or sale of property and even both. Either involved parties should exempt this consideration from the sale of an underlying real estate or it shall be applied only when lease rights are not in sync with the property.

When any one or both the involved parties in lease cannot reach out to a mutually agreed rent for the configuration, it is best to refer the rent comparable from local investors with similar towers.

During the whole stretch of the lease period, there can be periodic in the value of tower. Those who do not have idea of how it works can involve cellular lease consultants to intervene and guide the sellers and buyers with proper insight and solutions.

It is important to take account of aforementioned points so that the investor and property owner both take rational decisions.

@ @ @ @@page

Leasehold Finance Advisors, Llc is a pioneer name in field consulting group in wireless. Their knowledge and expertise in Cell tower lease agreements serves the landowners to get the maximized value for their property from the investors.