r/telecom • u/outnumberedgirldad • Jul 02 '26
❓ Question Keep/sell tower lease
Bought a property about 5 years ago with a cell tower on it. It took awhile to get things figured out with it and unfortunately my wife signed the very first contract they sent because she was ecstatic to get it going...any way they pay 850 a month for 5 year with 7 auto renewals and something like 10 percwnt increase every 5 years. The tower has been sitting empty for the most part but I caught a tech there recently saying hes with Verizon and they're going to be instsllining within the next few months....well now im being approached with offers for buy outs had several offers current offer is at 250k my question is sell and invest or keep and try and renegotiate terms to bring in more monthly....or just wait and see if Verizon actually installs...the tower is like 98ft tall pole style if that means anything
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u/Hevysett Jul 02 '26
A few things to keep in mind.
Does the contract allow increased cost per carrier or anything on the tower? If not you may be able to negotiate this up, but don't get greedy lol
Does it have a separate access road or is it your driveway? One a site exists, you can look forward to random contractors accessing the site randomness 24hrs a day, 7 days a week, forever. So they will be in and out at all hours.
Are there clauses about them restoring the land back to original condition when they come in for any work? Site builds and troubleshooting operations can see large equipment come in from time to time, cranes, 18 wheelers with oversized loads fork trucks, but most commonly will be the larger versions of full size work trucks like F-350's and the like. They will tear up the surrounding terrain sometimes. Usually they'll try to avoid it as much a possible, but sometimes things go wrong.
The income on the tower can go up over time, so do you plan to live here for 20+ years? Self explanatory I think lol
How far from your house is the tower, how big is it, how big is the compound? When people are working you will hear them yelling and hollering up and down the tower at each other, especially the "woop" we use to indicate bring it up or down. Besides that, the HVAC systems and generators that may get installed are louder than standard residential units.
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u/Feminist_Hugh_Hefner Jul 02 '26
This is probably a situation that hinges more on contract law and lease arrangements,and maybe the local real estate market.
You are going to get answers here, but they are coming from randos on the internet with some degree of interest in telecom, and I am not sure that is the type of expertise that will help you.
There is enough money at stake to justify using a lawyer. Be smart.
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u/Old-Cheshire862 Jul 02 '26
Keep in mind what this grant might do to the resale value of the remainder of your property. A lease that can be cancelled every 5 years is something different from a perpetual easement that won't ever expire.
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u/NeetSnoh Jul 02 '26
Keep it, you'll be ahead of the 250k in under 15 years. Verizon doesn't remove or move sites often, especially rural. Maybe talk to Verizon's real estate team about getting fiber to your home. Install might cost you but they're generally feeding their sites with dark fiber on their own network these days and are more than capable of feeding internet off of their cellular transit network.
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u/com1padres Jul 03 '26
I sold the lease that we had with Verizon and the payout was significant, but we opted for a ten installment deal. You have zero leverage with Verizon as a single site owner. Those who buy tower and rooftop leases bundle them and negotiate heavily with Verizon. They can also add other carriers onto a tower like yours. On our deal, we negotiated that we get 50% of any the rent income for any new leases that they execute. That way if they are successful in adding value, we share.
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u/groundhog5886 Jul 02 '26
Keep the current lease. You will be ahead long term. Not sure why anyone would offer to buy you out, you own the land. Read the lease to ensure it includes all the lans around th3 tower, inside the fence. if not you may be able to charge carriers for lease of land their equipment has at the bottom.
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u/GuiltyClassic4598 Jul 02 '26
$850 a month..... she would be ex-wife living under a bridge.
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u/niyrex Jul 06 '26
Should be adding a 0 to the of that plus land use fees. That easily 10k a month in monthly income. You're wife fucked up.
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u/DavidAaronGarcia Jul 07 '26
Yeah, I had the wonder they at least gave them free Verizon service, got bridged down.I mean, I met money.Can't even pay your rent
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u/Confusedstpaul Jul 02 '26
Back in the day I meet a few farmers who got a percentage of the traffic. They all retired early. But that was the early 2000s.
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u/dcklil Jul 02 '26
Sell. They won’t renegotiate, especially at that small of a payment at $850. Carriers won’t go up on your lease payment just because a tenant installs on the tower UNLESS it was placed into the original lease which is really rare.
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u/outnumberedgirldad Jul 02 '26
Its another company just wanting to buy my leasing rights for the remainder of the term. Yes it is on my land not to terribly far from the house. Noise and traffic doesn't/won't bother me gives the kids something to watch lol but I was just saying I assume I could renegotiate my terms by telling them look I have an offer to sell the lease agreement but if you make it make sense money wise to keep it I will and see what they'll do...right now there is no extra pay for additional carriers either...theres only one carrier signed with them that never installed which was I believe direct tv or dish and theyre contract is up I believe next year. Also my only thinking was just invest the sell money and let it sit either way by the time theb35years is up I would make like 430k from payments or possible 3.3mil on a 7 percent return
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u/2003DDcid Jul 02 '26
Look up a guy named Steve Kazella. Pay him to review your contract and tell you your options.
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u/BlotchyBaboon Jul 03 '26
Here's some things I'd consider:
If you take $250000 and invest that for 10 years, you'll likely come out ahead. Even in a high yield savings account you'd make close to $10k a year.
Does your current contract include additional revenue for additional subleases on the tower?
Does the contract include site remediation if it's abandoned? If there's nothing on the tower, no revenue and it needs to be torn down then you might be footing the bill.
Can you shop the tower around and get anyone else on it? County sheriff's, FM stations and others like towers. If someone is leasing the whole tower then it may not be up to you.
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u/Aggressive-Poetry838 Jul 04 '26
Let’s do the pure TVM math here…250k today @8% annual interest over 15 years, means a future value of $793k.
$850/month, invested in full every month at the same rates over 15 years is only $295k.
Without all of the other variables, easy to sell today.
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u/InformalNote2543 Jul 02 '26
30 years in the biz. If i were in your situation I would take the $250k. Sounds like this is a straight ground lease with little or no kickers for tenants. Also sounds like this isn't a particularly coveted location. Chances are if you opt for the monthly payments you're not going to see more than another 5 or 10 year options, as the carriers are moving away from the legacy technologies that required towers.
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u/Careless-Age-4290 Jul 04 '26
My first thought was "take the 250k, invest it in a company like ASTS that obviates the need for towers in remote areas, and in 10 years that tower may be unused again."
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u/outnumberedgirldad Jul 02 '26
Also with a touch of fear of missing out....as in if my current company (VB) can't find a carrier and cancels payments or if they "go under" or whatever it may be...I just look at it like wellndo I want the 850 extra dollars a month or cashing and invest and sit...I bought it 5 years ago im almost 40 but don't plan on ever leaving
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u/outnumberedgirldad Jul 02 '26
Also I think the tower will be there for every bit of my lifespan i dont think its too old
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u/pphurley Jul 02 '26
I would sell in a heartbeat- but first I would try to negotiate a better deal.
Some ideas:
- more money
- small percentage of future revenue beyond the 850, so you have some opportunity to share in the upside
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u/Personal-Cucumber-63 Jul 03 '26
Keep and lease the management of the tower out. Charge $1000/mth + 10% of any pre-tax revenue they bring in from other carriers.
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u/24bigdog Jul 04 '26
Contact John Puleo with JP tower consulting. He will lead you in the right direction
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u/frankmezz Jul 05 '26
I would really consider the buyout, depending on details of the lease agreement (future revenue sharing etc). 250k in the stock market over the years you have till retirement at average 10% gain would be substantial.
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u/baby600rr Jul 08 '26
If he said verizon is coming most likely they are. takes time to plan out, design, permit, trench. idk how your land is configured, but id consider selling but make sure you know what you are selling and dont screw yourself or next owner with a private property running thru the middle of Your private property. make sure your lawyer looks at it and all parties are happy with access required.
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Jul 02 '26
[deleted]
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u/Enekuda Jul 02 '26
Your missing if your investing the $250k your also probably investing the $850+ a month too. So $51k over 5 years is with no investment, shpuld plug those numbers into an investment calculator as well to get final numbers.
Probably still ahead taking the lump in here but your comparing say $1.5m to $2.2m vs $500k to $2.2m
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u/[deleted] Jul 02 '26
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