Share of new leases

by Jonathan
(New York, NY)

What is a fair percentage for the lease buyout company to receive of new leases?

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Sep 06, 2022
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Zero percent
by: Stephen

I sort of understand your question and why you are asking it. The problem is that the crap that most of the cell tower lease buyout companies throw at telecom landlords is quite confusing at best. The "fair percentage" of potential revenue share is a big carrot that can trick you into believing that they are actually doing something to market your site.

1. If you have a rooftop cell site and you are selling them an easement, are you actually going to give them an easement for the entire rooftop? I would hope not. They should get zero percent and you should get 100% if a new rooftop tenant like DISH for example was to utilize your building.

2. If your lease buyout is for a tower with a ground lease, if there is room inside the fenced area and you have zero revenue share structured in your lease, you would get zero and they would get zero. If you had 20% revenue share on new tenants and a new carrier put their ground equipment then perhaps splitting the amount would make sense. No carrier is going to go outside the fence and sign a separate ground lease for more money if they can locate inside the leased premises.

Hope that helps. If you have questions about your cell site lease buyout offer please give us a call at Tower Genius at 1-888-313-9750.

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