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WHAT'S A CROWN CASTLE LEASE BUYOUT WORTH IN 2022? Thinking about selling your Crown Castle lease agreement or rental stream? Everybody seems to want to buy your Crown Castle cell tower lease future rental income. SO WHAT'S THE CATCH? Okay... Sit Down. Here's Crown's Dirty Little Secret...
So every time that you get a call or a letter from Crown Castle International about your cell tower lease agreement needing to be extended, they probably make you an offer to buy you out of the lease. This is called a cell tower lease buyout. Making a one time cash lump sum payment in the form of a perpetual easement, aka Crown Castle buyout is much more preferable to a company like Crown Castle than having to pay the cell tower landlord over the next 20, 30 40 years. Keep this in mind, every time Crown Castle completes a lease buyout deal with one of their landlords, they literally won the lottery, even if they paid you multiple six figures for the "wining ticket."
So here is what they are not telling you about your Crown Castle lease purchase offer. Companies like Unison, TowerPoint, Landmark Dividend, AP Wireless Infrastructure Partners, Symphony and others not worth mentioning here are all trying to buy your future telecom lease rental stream cash flow. And that's fine. There is plenty of business out there for everybody. They are all decent companies and all their money is green. You probably get calls and offers from them all the time. What Crown Castle is not going to tell you, is that if you give CROWN a RIGHT OF FIRST REFUSAL when extending your cell tower lease, the above mentioned lease buyout companies are not going to really compete that aggressively for your business. So... DO NOT GIVE CROWN CASTLE A ROFR unless you want to get a nothing burger of a cell tower lease buyout offer from them. This is America and we still have a free market system. They are trying to control the market to create an unfair advantage over you by requiring your to give them a ROFR. Now, in some lease extensions, you really have no choice, that is why it is important to get expert guidance when you amend your lease agreements with Crown and others.
Getting back to our lottery ticket analogy, to think Crown Castle is not making a boatload of money is UDDERLY RIDICULOUS. Sorry about the cow udder joke, we couldn't help ourselves. But a Crown Castle cell tower lease is a CASH COW. Do you really want to trade a few years of rent now, and not get rent in the future? If these deals are renegotiated properly they can be an incredible source of income for both the tower company and the lucky cell tower landlord potentially for a lifetime.
How do we know that these cell towers are cash cows? We have seen hundreds and hundred of Crown Castle leases, and we know what they pay to landlords and we even know the dirty little secrets about how much Crown Castle makes on these deals on the back end. Heck, we've even seen Crown towers that were generating over $26,000 in rent for Crown per month. You read that correctly.
Maybe you've heard that Crown Castle invested over $7 BILLION in a fiberoptic company. Why are they spending the big bucks? Can you say 5G? Because the industry is changing and they are a big player in small cells. Is it a good strategy for Crown Castle International? Time will tell. Crown Castle's small cells utilize fiberoptic networks to tie into cell sites and they can operate these cell sites remotely. Soon Crown will be able to sublease or sublicense frequencies on cell towers they control to multiple carriers if they control the fiber information highway and the vertical steel that 5G antennas are mounted to. And small cells will start to impact the rent payments that cell tower landlords receive in the decade as hundreds of thousands of 5G nodes are deployed in the major US Metropolitan Areas. Maybe it's a good time now to sell your Crown Castle cell tower lease rent payments after all? The commissioned sales reps from various cell tower lease buyout companies trying to convince you to sell your Crown rental stream are reading a sales script, and do not understand themselves that the very technology that they are trying to scare you about is going to put most of their employers out of business by 2030. And you can take that to the bank.
So, when you are negotiating a cell tower lease buyout with Crown Castle, or you are trying to negotiate a cell tower lease extension amendment with Crown Castle, remember this...the deck is never stacked in your favor. Before you sign anything with Crown Castle International, talk to the Crown Castle Cell Tower Lease Experts at Tower Genius. There is a reason they talk about Kevin Donohue and Steve Kazella, the Crown Castle lease buyout experts at the Crown water cooler.
Call us today at 1-888-313-9750 or fill out a Crown Castle Lease Buyout Contact Form.
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