What Good For the Consumer May Not Be Good For The Lease Owner

Redundancies are the nemesis of a cell tower lease owner. The one big fear that can wipe out the once counted on cash flow is redundancy. Having the income was like cashing in monthly on the lottery. It is a pretty sure bet that every lease owner has received multiple inquiries and offers from the dozen or so reputable cell tower/rooftop lease buyers.

Why do Cell Phone Carriers Terminate Leases?

There’s an enormous expense that can be saved by eliminating redundant leases. Cell phone carriers may have multiple cell phone carriers on their towers or rooftop easements (if a general easement). Each carrier has an obligation to pay someone, normally this would be the master lease holder or in some cases the property owner, if he/she also owns the steel or leases to each carrier individually by specific easement. By terminating leases that duplicate coverage for a carrier, lease payments can and will eliminated. “A dollar saved is a dollar earned” (anon).

“What is My Lease Worth Now?”

There will be a lot of decisions made that will affect a lot of lease owners. Redundant leases are subject to termination. The value of a cell tower lease, if the tenant has two leases at the same location or even in close proximity may be in jeopardy of being terminated. The only company that knows ‘if’ or ‘when’ this will happen is not going to share that information until they are ready. The only way to find out what your cell lease is worth is to find out what someone will pay for it. To insure that price is the best price, an auction(RFP) should take place.

Andrew G. Kellerman, President of 1st-CellTowerBroker.com, Inc. has a financial background in: Stocks, Bonds, Commodities, Options, Real Estate, Mortgages, Cell Lease Consulting and Cell Lease Sales.

760 470-1782 or email