Understanding the Ins and Outs of Cell Tower Lease and Buyouts
In the event you are to involve yourself in a cell tower lease anytime soon or perhaps carriers are looking forward to take part on such matter, then to know your way in and out is important.
It has been found that telecommunications companies have advanced greatly over the years and cell towers and even rooftop antennas are being made available to cater to wireless services that these carriers have. In order for such towers to be installed accordingly, they will have to be specific about the location and the placement that it has to be leased from the property owner to ensure that everything goes as per the lease agreement. 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. In a sense, not only that both the parties will have to consider a common agreement but this agreement will also be recorded respectively with the local land registry. With the cell tower lease rates set and agreed accordingly, having the agreement recorded will give both of the parties their rights to ensure that everything is on track. So regardless if the property changes hands or perhaps the carrier chooses to decommission the tower at some point in the future, everyone’s right is being protected accordingly.
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.
Thing is that it is very important that these things are being agreed accordingly prior to ensure that both parties involved will benefit from each other. What makes this a great thing is that both parties will be able to benefit from such and that it all boils down to how much investment or money one will get from the opposing party. In order for the right amount to be agreed upon, it is just important that planning and discussion is being tackled accordingly to ensure that the telecommunications company and the property owner is able to reap as much from their goals.