(Oxford, MS, USA)
My family owns property in Northeast Mississippi on which SBA owns a cell tower. They have requested a 30 year extension of their lease on the property. When I told them that our rate was not competitive with other rural leases and that I did not like the five year rate escalation, they immediately responded with a 35% increase in the base rent, a $4000 signing bonus, and an annual 3% escalation rate. This makes me think the tower is worth more than I am aware. How do I value the tower property? And should I ask for a greater increase in the base rent?