January 24, 2021

Volume XI, Number 24

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Cell Tower Leases Can Help With Current Financial Problems

Selling a cell tower lease can generate large sums of money but not affect an organization’s ongoing operations. Businesses or other entities with cell leases that are facing financial challenges due to the COVID-19 virus may want to consider such a sale.

Cell tower leases have sold in the range of 200 times monthly rents, despite the lease having terms allowing cancellation on short notice. Purchasers, including large publicly-traded companies, ignore such terms because they know cancellation would lead to a gap in cell service.

Very importantly, a well drafted sale will not affect the lease owner’s continued use or development of the building or property on which the cell tower is located. A lease sale can provide a financial bridge to help an organization get through the current economic situation.

Getting the best price and terms (property use unaffected) usually requires getting bids. This also assures owners, lenders and creditors that the sales price is the best possible.

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© 2020 Varnum LLPNational Law Review, Volume X, Number 91
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About this Author

John W. Pestle, telecommunications attorney, Varnum
Counsel

John is a member of the firm's Environmental, Energy and Natural Resources Team. Since 1996 he has represented property owners across the country (businesses, developers, schools, churches, municipalities, real estate companies) on the grant, renewal and modification of cell tower leases with companies like Verizon Wireless, AT&T Wireless, T-Mobile and Crown Castle. He has also represented clients on the evaluation or sale of over sixty (60) cell tower leases and future leasing rights to companies like American Tower, Crown Castle, SBA, Wireless Capital Partners,...

616/336-6725
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