Cell sites, including towers, water tanks, and rooftops have been selling at record highs for the past year or so. But are cell site values going to stay solid or have prices topped out and are beginning to soften?
Your cell tower leases are an important financial asset, just like a savings account, retirement account or rental property you may own. Each of these financial assets has a specific value, risk and return associated with it. And all things being equal, most of us want to maximize the growth and value of our financial assets.
Many real estate professionals are facing or will face the opportunities and challenges that cellular leases present. Cellular leases—whether on a tower, rooftop, water tank, or billboard—can offer tremendous revenue potential when properly managed.
Cell sites, including towers, water tanks, rooftops, have been selling at record highs for the past year or so. But does that mean prices have topped out and are beginning to soften? Or does it mean there are even greater values ahead of us.
If you have a cellular ground lease for a tower or other installation on your property, chances are you’ve considered selling it at one time or another. High cellular ground lease prices, news of lease cancellations and the desire to obtain a large cash buyout are among the most frequently noted reasons when a ground lease owner approaches us to find out how much capital a cell tower acquisition could net them.
The last thing most municipalities and local governments need is additional pressure to do more with less income. Well that could be coming your way, thanks to new cellular technologies, legislative initiatives to reduce cellular rent rates and pressure from telecoms for future rent reductions on existing leases.