Understanding the Ins and Outs of Cell Tower Lease and Buyouts
Should you be looking forward to learn more about cell tower lease and how it works, then chances are that you will want to make adequate research about its very use and specifics.
Over the years, technology has advanced greatly and you could see that wireless carriers and telecommunications today are building cell towers as well as rooftop antennas. Thing is that these cell towers need to be placed on critical locations, most likely over a property, which has to be leased as per an agreement with the property owner to have the equipment placed on the premise. So both parties benefit in a way that telecommunications companies are able to benefit by building their network on properties they do not own via cell tower lease, and that the property owner will receive a lease as per the signed agreement.
Typically speaking, cell tower lease buyout, or also tailored as a lease prepayment, is the sum of payment that is given to the owner of the property just so the telecommunications carried will be able to place their network on the said property and rent it on a specific basis. Not only that the contract will be between the parties involved because it will also need the presence of the local land registry just so the agreement is being recorded. This basically leads to ensure that both of the party will be able to have their full rights based on the state’s specifics with regards to cell tower lease rates. With the rights being protected accordingly, everyone will be able to ensure that they are protected, regardless if the property owner changes hands or that the network carrier decides to decommission the tower.
Generally speaking, cell tower lease rates are not based on one thing because there are just so many factors that could affect such numbers, but the location basically is one of which that plays a major role down the line. Furthermore, there also are other factors that contribute to such changes in rates and this includes the site lease agreement, the time value of money, the specific carrier that will be involved, prevailing interest rates, the value of the property, the rent, and the list just goes on.
It really is very important that both parties will have to be specific about the agreement in order for them to get the most from their goals. Depending on how well the negotiation goes from scratch, either the carrier or the property owner will benefit most but nonetheless, it is a win-win situation that everyone will be thankful for. Nonetheless, planning and adequate discussion is vital at the end of the day in order for both parties, which is the telecommunications carrier and the property owner, to get the most from their end.