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Navigating New Lease Negotiations 

When a site acquisition specialist contacts you about a potential cell tower on your property, it's important to recognize that they may be exploring options with multiple nearby property owners. This is particularly relevant in rural areas, where competition among neighbors for additional revenue can be fierce. However, fewer options increase your chances of securing the site, providing leverage for higher monthly rental payments. 

Overcoming Challenges

Negotiating in rural areas comes with its challenges, especially when zoning regulations are stringent, and terrain is difficult. These factors can significantly limit cell tower placement options. In such settings, taller guyed towers up to 300 feet can be built, but other considerations come into play. Access road length, for example, is a critical factor often overlooked. Longer roads increase construction and maintenance costs, making it essential to ensure that the operator covers road maintenance, including any damage incurred during construction. 

Securing Your Interests

In new lease negotiations, having a consultant and experienced attorney on your side is crucial. Site acquisition specialists operate nationwide, scouting ideal locations for cell towers. It's imperative to protect yourself from complex agreement language and potential pitfalls. Investing in expert review may seem like an additional expense, but it's well worth it for safeguarding against challenges and ensuring that you don't agree to unfavorable terms. 

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Don't navigate new lease negotiations alone. Contact JP Tower Consulting today to enlist the expertise of seasoned professionals who can guide you through the process. With our assistance, you can confidently secure the best possible terms for your property, ensuring a favorable outcome for years to come. Take the first step towards maximizing the value of your land—reach out to us now! 

New Lease Navigations FAQs

  • What is my cell tower lease worth?
    The value of your lease depends on several factors. If it has over 15 years left and escalates at 3% annually, its market value is roughly 19 times the annual rent. However, lower escalations or a Right of First Refusal (ROFR) can decrease its value. For leases within 15 years of expiration, tenant composition and lease duration are critical. Closer expiration dates increase value, especially with multiple carriers. Sites with less than 5 years left are valued based on a multiple of what the perceived negotiated rent would be at final lease expiration. While a site under 2 years from expiration is based more on a multiple of tower cash flow.
  • How long will the process take to sell my tower lease?
    The timeline for closing depends on any title defects and how quickly attorney redlines are resolved. It's crucial to clear any lines, judgments, or back taxes before starting the process to sell your lease to avoid complications. If there's a mortgage, discuss an SNDA with the lender as it's often required for closing, especially if the loan amount matches or exceeds the purchase price. Properties without a ROFR are simpler to transact. Typically, closing takes 3-6 months, but unforeseen issues might extend it beyond a year, especially with ongoing negotiations between attorneys.
  • When is the best time to sell my tower lease?
    Consider selling your lease if it has less than 10 years remaining, as it's often valued differently by tower and third-party buyout companies. Another opportune moment is just before or after an escalation hit if your lease is long-term. Ensure you have a plan for the proceeds before selling.
  • Should I have an attorney review this lease buyout?
    Absolutely, I recommend getting legal advice. If you sell the property without proper consideration for the tower lease, it could complicate the sale or burden the buyer with unexpected costs like property taxes. That’s why you’d want to account for a reimbursement for property taxes so a future buyer wouldn’t be on the hook for taxes on a tower they receive no benefit from. Contract terms will always favor the tower company and hiring a telecom attorney for that piece of mind is crucial.
  • How long is the buyout for?
    Lease buyouts are often structured as perpetual or 99-year easements. If you prefer shorter terms, third-party buyout companies offer options with 50- or 60-year easements.
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