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Would you invest in a cell tower lease knowing that the carrier paying the
rent can cancel anytime with 90 days notice? Then why do some very big
firms specialize in buying these leases? These are interesting questions that
I'll try and answer.
The first question is, is cell tower lease termination real? You bet. This is a
piece from a typical cell site lease, "This agreement may be terminated,
without penalty or further liability, as follows: a) by either party on thirty (30)
days prior written notice..." (1). Ask T-Mobile cell tower lease owners. "I
anticipate that more than 80 to 85% of the T-Mobile sites across the country
will be removed within 3 or 4 years from the date that the merger is
approved.", if approved.,(2)
The telecom buyout industry is just a little over a decade old. In this short
period of time there have been some major consolidations, causing many to
suffer the unimaginable, lease termination. Let me report a few that affected
many: Cingular and AT&T merger may ultimately affect between 8,000 and
20,000; Sprint & Nextel merger could cost 20,000 lease holders' their
monthly checks; Verizon and Alltel merger could eventually end as many as
10,000 tower terminations. Chances are you will not be affected.
I can tell you that during my short tenure working as a cell site acquisition
executive I've run across several used-to-be cell tower landlords that lost
their leases due to redundancy and or technology improvements. What is
peace of mind worth?
So what's a cell tower lease owner to do? Contact a cellular lease advocate,
cell attorney or 1st-CellTowerBroker.com. Any of us can give you an idea of
what the site is worth or if you may be in danger of losing your lease due to
redundancy. We can contact cellular buyout firms on your behalf and get
you competitive offers, insuring you of the highest sales price possible. And
we won't charge you a dime.
Why do the telecom buyout firms want to purchase a cell site that may have
the possibility of termination? Because they do their homework and know
how much 'risk/reward' the cell site is worth to them. All in all, they figure
they will lose about 3% of their portfolio due to cell site terminations. There
will be more terminations in the future due to continued carrier
consolidations and improvements in cellular technology. Many more will be
approached by so called 'lease reduction' companies, but that's a different
story for another time.
Cell Tower Lease Terminations
Own a cell site? Do you know what it is worth? We set record prices.
Are Lease Terminations Real?
What is Peace of Mind Worth?
Are Buyout Firms Afraid of Terminations?