Negotiating With Sales in Mind
My approach to negotiating a cell tower or rooftop lease is to ‘do the deal’ as if the lease was going to be sold. The better the key terms are, the more value the tower lease has in cash value.
Selling a Lease: The Window of Best Value
All leases shouldn’t be negotiated as if they will be sold tomorrow. The terms of a lease can be ‘timed’ so that the lease’s best value occurs in a particular window or time frame. Give and take, is the key to timing. Most cell phone carriers will work with a landlord when putting together a cell site. The landlord is not as free to dictate the lease’s terms as they are when re-negotiating an existing lease, but a little creativity can go a long way.
“I’ll Never Sell My Cell Tower Lease”
I can tell you that I’ve heard this refrain almost as often as I’ve heard, “they are terminating my lease. can you help me to get another tenant?” You might want to negotiate the lease with ‘holding on to it forever in mind’, but a savvy investor will always keep his/her options open.
Andrew G Kellerman’s expertise is in the telecom industry, dealing with many Fortune 500 companies. Background in stocks, bonds, commodities,and options as VP for Thomson KcKinnon, with over 30+ years in all aspects of real estate and mortgages.
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