One statement that often echoes when discussing a cell tower lease agreement is, “I don’t need the extra income.” But the real question here is: who wouldn’t appreciate an opportunity to enhance their financial portfolio?
Who does not need the money?
Consider the scenario where a cell phone service provider, such as Verizon or AT&T, approaches you – a property owner – with an attractive cell tower lease proposal. They’re offering a compelling $1200 monthly cell tower rent for your strategically placed property. The terms of this cell tower lease agreement span a significant duration, potentially 40-50 years, with an enticing promise of a 2 to 2.5% rent increase annually or at each 5-year renewal.
As a property owner, you would naturally be thrilled. You’ve become the fortunate recipient of a profitable cell tower lease agreement without much effort – it’s practically free money.
However, let’s delve deeper into the true value of this cell tower lease. The consistent $1500 monthly cell tower rent totals to an impressive $18,000 annually, with a slight 2 to 2.5% increase over time. The overall worth of this lease agreement is well over $300,000, making it an incredibly valuable asset.
Re-investing Cell Tower Lease Rent
By strategically selling your cell tower lease, you can unlock further potential profits. The lump sum from the sale can be invested into a Delaware Statutory Trust (DST) with an attractive yield of between 5-9% per year, or into a 1031 Exchange, effectively deferring your capital gains tax and boosting your investment potential.
The benefits of selling your cell tower lease don’t end there. After the cell tower lease sale, my team and I will work on your behalf to negotiate new cell tower leases with additional tenants (carriers) for your tower, rooftop, or property. For each new cell tower lease agreement, we share the cell tower rent with you on a 50/50 basis. I can assure you, this new cell tower rent will likely exceed the original $1500 per month.
If you’re a cell tower landlord, whether you hold one or a hundred cell tower leases, I encourage you to get in touch with me. Let’s have a conversation, free of obligations, about how you can potentially double your cell tower lease income.
Remember, nothing in the telecommunications industry lasts forever. Today, your cell service provider might be comfortably paying you $1500 monthly, but during the next renewal, they could propose a reduced cell tower rent. By selling your cell tower lease, you transfer the financial risk and protect your income. Explore your options and let’s maximize the profitability of your cell tower lease agreement.