Although it has become synonymous, it is usually the cell tower lease that is for sale and not the cell tower itself that is for sale. Why, you may ask. Because normally the cell site equipment is owned by the cell carrier company and not the property owner.
Most Cell Towers Are Owned by The Cell Carriers
Most cell sites are originated when a mobile carrier, like Verizon, At&T or Sprint approaches a property owner and negotiates a space on the property to construct a cell site. The carrier may determined that the particular real estate is the best possible location to fill in a dead or weak spot in their coverage.
Selling a Cell Tower Doesn’t always Mean The Tower is for Sale
When a cell site landlord wishes to sell their site lease, most will invariably communicate that they wish to ‘sell their cell tower’. What they may mean is they wish to sell their tower site lease. The synonymous, and often erroneous phrase is not just used by sellers, buyers also mistakenly use the same erroneous phrase.
What is significant is, that if the cell tower lease owner also owns the tower, it is a whole new ball game, if they haven’t given away the control of the tower unknowingly or through poor negotiations. By owning and controlling the tower, the owner can lease additional space to any new comer AND not share the new rent.
Actually selling a tower means selling the ‘steel’ (and all of the added benefits of additional income). This brings out cell site buyers who are not normally interested in just cell site leases, but a segment of the industry who are interested in actually interested in ‘buying the cell site towers’ and will pay significantly more to actually own the ‘steel’. Big, big difference.
Before you try and negotiate any cell site lease transaction, get a quote. You will be money ahead. 760 470-1782
Andrew G Kellerman’s financial background includes: VP, Thomson McKinnon, Stocks; US and Corp Bonds; Insurance; Commodities; Options; Real Estate; Mortgages; Cell Site Lease Consultation and Sales