The Deal: In late 2015, American Tower paid 5 billion dollars to Verizon for the rights to 11,3234+ cell towers. Within this agreement, Verizon maintains the right to sublease space on the towers for $1,900/month, which will escalate 2% annually for a 10-year term. On average, American Tower will pay over $440,000 per tower site, reinforcing the need to prioritize both long-term and other agreements.
- The Offer: Currently, representatives from American Tower are offering lease extensions and lease buyouts to property owners who lease a portion of their land to Verizon. By purchasing the cell towers, American Tower is securing a profitable return on their investment.
- The Problem: American Tower is making offers to property owners that are grossly undervalued, and also making revisions to their leases that may result in major issues for the short and long-term. American Tower is offering one-time signing bonuses ranging from $10,000 to $30,000. The offer is nominal in comparison to the value that American Tower gets from the deal. American Tower secures its $440,000 investment in the tower and the ability to make money going forward. Alternatively, the property owner commits long-term to a bad lease.
- The Solution: If American Tower approaches you with a request to extend or purchase your lease, proceed with caution. You should not be coaxed into signing an undervalued lease for the next several decades. American Tower needs you more than you need American Tower. Make the most of opportunities to negotiate not only better financial terms, but terms that ensure you and your property are protect. Remember—Don’t just close the deal—Close the BEST deal
Since 2010, our clients have received more than 3 times their original rental income. Vertical Consultants may be able to do the same for you. Call today for a free consultation.
