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Towering Over: How Landowners Can Maximize Cell Tower Lease Provisions

February 02, 2014 Industry News
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The San Antonio Business Journal website has an entry dated January 15, 2014 that details how a company was forced to sell its cell towers to pay off its debt. Cellular towers might sound lucrative to own, yet there are a number of things a tower owner has to consider and do before he or she can expect revenue from the investment. The article provides more information on the matter:

CPS Energy

"CPS Energy has sold its wireless-communications towers to Crown Castle, an independent owner of wireless infrastructure, for $41 million, according to an item posted on the city-owned utility’s blog.

The power company used the proceeds from the sale to pay down debt, the blog says."

While a helpful cell tower lease will strengthen the coverage of telecommunication companies based in the area, it might not always be easy for the landowner. It’s a sticky business to be managing cell tower assets and ensuring that the telecom companies are upholding their end of the bargain. Landowners who have difficulty keeping up with handling the towers or feel as if they’re not getting enough from the arrangement should consider selling their cell tower lease to cell tower investment firms like TowerPoint Capital. The company can buy the lease or help landowners enter into an exclusive marketing program to generate higher earnings in the future.

Tower leases just can’t be drafted on the fly. The terms that make up the arrangement need to be carefully worked out so the landowner doesn’t end up on the losing end of the deal, ensuring that he or she gets a fair and maximized cell phone tower lease.

(Article Information and Image from CPS Energy sells off cell towers for $41 million to pay down debt, San Antonio Business Journal, January 15, 2014)