Cell Tower Buyouts; why asking key questions from the very beginning is so important.

When we first speak with a client, we often discuss how monetizing and maximizing their position with their cell tower lease can benefit them.

The most important question is: “What are your plans for the property?”.

1. Are you a short-term holder?
2. Do you plan to put it on the market within the next few months or years?
3. Do you plan to demolish and redevelop the property??

Understanding the client's position and plans is crucial. Short-term holders are common. They will fill the buildings with tenants, renovate the lobbies, plant lush gardens, and then put the property on the market the following year.

It's good to hear that. Then we know what kind of service they need, and there's a 50/50 chance they'll benefit from our services.?

Here’s the game: Cell tower revenue trades for approx. 5 cap. You're probably better off including the revenue with the building and selling the whole package if you sell it for less than a 5 cap.

If not, it is best to separate the antenna and sell it for maximum value.?

If you know the antenna's valuation, you can negotiate with buyers who appear uninterested in the rooftop antenna lease.

Building owners who wish to demolish their buildings will not be advised to sell outright. This complicates the relocation process further. A "COW" (cell on wheels) is a better solution that allows the carrier to take the equipment from the building and host it on a temporary solution at the developer's cost.

If the lease term on your existing antenna is longer than the date you wish to develop the property, you will need add the relocation costs to the redevelopment costs. You can get a consultant to work with the carrier for a future installation. While keeping the aesthetics of the building in mind, engineers and architects will design the location of the equipment.

It means antennas can be hidden behind grills, chimneys, or behind the fa?ade of the building.

You can then monetize and receive a lump sum payment equivalent to 18-20 years of revenue up front!

That's why asking key questions from the very beginning is so important. You want to make sure your services fit the client's needs.