Like everyone else, cell site owners have not escaped the wrath of the COVID-19 pandemic. One hundred thousand lives have been lost in the US, and the consequences of this pandemic will remain for the foreseeable future.

Beyond the devastating personal toll this crisis has inflicted, thousands of families and businesses are suffering tremendous financial losses. Even with the billions of dollars the US government has invested to dampen the effects of this disaster, many companies are closing, some personal real estate is in danger, and retirement savings are jeopardized.

In Europe, there have been some very isolated cases of damage to cellular towers due to unfounded rumors of 5G problems. Fortunately, the US, cellular site values, and incomes have remained secure. This stability has led some smart site owners to consider how to utilize the untapped cash value in their cellular leases to meet current funding needs or to take advantage of new opportunities and eliminate unnecessary risks.

IDEAS AND OPPORTUNITIES TO CONSIDER

The COVID-19 pandemic has created unique challenges and situations for cell site owners. For business owners with cellular sites on their properties, monetizing their cellular leases can provide a simple solution to cash flow and other business continuation issues.  Best of all, this preserves all ownership and control of your real estate. The National Law Review states that property owners are better able to maximize their cellular leases values by separating their sale from the sale of the property.

Cellular leases have been selling at very favorable rates, even while other real estate investments are facing uncertainty. According to a recent article in the New York Times, the distressed commercial real estate market will offer some unique opportunities in the coming months. With tax advantages available to many cell site lease owners via a 1031 exchange, obtaining income-producing real estate at this time may be very attractive.

The vacation- and second-home markets are expected to be hit hard by the current pandemic. Forbes projects that the vacation rental market will take a significant hit with an expected slow rebound.

MAXIMIZE THE VALUE OF YOUR CELLULAR LEASES

If you want to maximize your cellular leases’ cash value, consult with one of the cellular and financial experts at Crescendo.  They can provide you with a range of options that best meet the needs of your situation and opportunities. One of our ground lease experts can address your specific concerns and situation. Click here or call us at 203.972.3200 or email us at info@crescendotrust.com.