When it comes to cell tower lease buyouts whether you are selling a Verizon Lease or selling your T-Mobile lease or selling your AT&T Lease, one of the key topics that often comes up in discussions with property owners is the idea of long-term easements. As technology rapidly evolves, many property owners find themselves wondering if locking into a 99-year easement or perpetual easement agreement is the right choice for their property and financial future. We’ll break down what easements are, explore the pros and cons, and provide insight into why a cell tower lease buyout might be a smarter and more secure financial move.
What Is a Long-Term Easement?
In simple terms, an easement is a legal right granted to someone to use a part of your property for a specific purpose. In the context of cell tower leases, a telecom easement grants a 3rd party the rights to use the space for telecom purposes only under the existing cell tower equipment located on your rooftop or land for a specified period of time. Depending on the type of easement it also may allow the Grantee the rights to add new tenants.
The key issue with long-term easements—especially ones that span 99 years or more—is the commitment they entail. The idea of locking into an agreement for such an extended period can be a difficult decision for many property owners. 99 years is a long time in the world of technology, and committing to a cell tower lease buyout with such a long-term easement may feel like a gamble.
The Rapid Pace of Technological Advancements
When it comes to technology, the cell tower industry is no exception to rapid innovation. Just think about how much the world has changed in the last 10 to 15 years. A smartphone is now a must-have in everyday life, and even devices like smartwatches that track heart rates and activities were unimaginable just a couple of decades ago.
In the world of wireless communication, 5G technology is already here, and it’s expected to continue to evolve, potentially replacing older technologies at a pace faster than ever before. In fact, many of the devices and services we rely on today may not even be in use in 10 years, let alone 99 years. This rapid pace of innovation makes it difficult to predict the future value of a cell tower lease.
Why a 99-Year Easement Might Be Worth It
Based on historical advancements in technology, the cell tower on your rooftop may not even be around in five years, let alone 99 years. Even if you’re offered a significant sum—such as a million-dollar buyout for your cell tower lease—it’s important to weigh the potential risks of cashing out vs holding.
It is equally important that Property Owners understand that most Easement Agreements have abandonment clauses. This means that if the cell tower tenants vacate for an extended period of years, the Easement reverts back to the Property Owner. Keep in mind that all cell tower lease agreements allow the carrier to cancel without cause in as little as 30-90 days’ notice make long term easements are far better gamble than keeping the monthly income.
Why Consider a Cell Tower Lease Buyout?
Given the uncertainty surrounding the long-term viability of cell tower leases, property owners should seriously consider the option of a cell tower lease buyout. Here are a few reasons why:
- Financial Security: A cell tower lease buyout provides immediate, lump-sum cash. Instead of relying on a long-term, uncertain income stream, you can lock in a secure payout now, which could be far more valuable than waiting to see what happens with the technology.
- Technology Uncertainty: As we’ve discussed, technology is evolving rapidly. A buyout allows you to cash out while the technology is still profitable, rather than holding out for a potentially outdated or obsolete lease agreement in the future.
- Avoiding Risk: By accepting a cell tower lease buyout, you eliminate the risk of having a decommissioned tower on your property with no income. If the wireless carrier terminates your lease prematurely, you’ll have already received your payout, reducing financial stress.
At Nexus Towers, we exclusively represent property owners in cell tower lease buyouts. If you only want to only understand the value of your lease, or have an offer in hand for a long-term easement, or just want to explore your options, we’re the expert in this industry. Contact us understand how we maximize the value of your cell tower lease or take advantage of our many FREE services.
