(Article updated April 7, 2025)
Are you thinking about selling your cell tower lease? If so, you’re not alone. Thousands of property owners across the country are evaluating whether to cash out now or continue collecting rent in the years ahead. At Airwave Advisors, we’ve helped clients navigate the complexities of this decision and negotiate over $60 million in lease buyout transactions.
Before you decide to sell your lease, it’s crucial to understand the potential benefits, risks, and long-term consequences. In this article, we’ll walk you through six critical factors to consider when asking the question: “Should I sell my cell tower lease?”
1. Immediate Cash vs. Long-Term Value
The number one reason most property owners consider selling their cell tower lease is immediate access to cash. When you sell your lease, you typically receive a lump-sum payment — sometimes structured as an installment plan — in exchange for the rights to the future income stream.
Understanding Discounted Future Value
Buyers calculate the value of your lease by estimating the total future rent, applying an escalation rate, and discounting that amount to today’s dollars. For example, let’s say your lease pays you $1,000 per month and escalates at 3% annually. Over 25 years, the projected gross income is around $437,511 (assuming the lease continues and escalates without interruption).
However, if you sell today, the lump sum offer may be in the range of $120,000 to $250,000, depending on the location, tenant, lease terms, and buyer interest. That’s a significant discount — but it comes with reduced risk and the ability to invest or use the cash now.
Why Accept a Discount?
Even with the discount, a lease buyout might be the right move. Why? Because there is no guarantee that your tenant will continue paying for 25 years. You’re locking in value today and eliminating the risk of future termination.
At Airwave Advisors, we help clients secure above-market offers by negotiating directly with institutional buyers. In many cases, we can boost your payout well beyond the initial offer you receive.
2. Cell Tower Tenants Can Terminate at Any Time
One of the biggest misconceptions about cell tower leases is that they’re guaranteed for decades. In reality, most leases contain termination clauses allowing tenants to cancel the agreement with just 30 to 90 days’ notice, for any reason.
Real-World Terminations Happen
While it’s true that major carriers like Verizon, AT&T, and T-Mobile are unlikely to cancel leases arbitrarily, we’ve seen entire networks decommissioned overnight. Nextel is a prime example — it was absorbed by Sprint and shut down. MetroPCS and US Cellular have exited markets in similar fashion.
No cell tower lease is immune to changes in the wireless landscape. By selling, you’re essentially cashing out before the tenant decides your location is no longer necessary.
3. Technology Could Make Cell Towers Obsolete
We’re living in an era of rapid technological advancement. While cell towers remain critical infrastructure today, disruptive technologies could reduce — or even eliminate — the need for traditional towers in the future.
Emerging Technologies to Watch
- LTE Direct: Developed by Qualcomm, this peer-to-peer communication technology allows phones to talk directly to one another without routing through a tower.
- Low Earth Orbit Satellites: Elon Musk’s SpaceX is building out the Starlink satellite network to deliver high-speed internet globally, without traditional ground-based infrastructure.
- Network Densification & Small Cells: The rise of 5G means that more data is being carried on small cell nodes, which can be installed on streetlights, buildings, and utility poles, reducing the demand for large macro towers.
While none of these technologies has yet displaced the need for traditional towers, the writing is on the wall: the future is uncertain. Selling now could be a smart hedge against obsolescence.
4. You Might Never Capture the Full Value of the Lease
Even if your lease continues for 25 years, will you still own the property by then? Will your heirs? According to the U.S. Census Bureau, just 37% of homeowners have lived in their home for 10 years or more. The vast majority of property owners sell or move within a decade.
If your cell tower lease is terminated or ownership changes hands, you may never realize the full value of your lease payments. By selling, you can access the cash value now and control how it’s used or reinvested, rather than gambling on long-term projections.
5. Understand the Impact on Your Property
A cell tower lease buyout doesn’t just impact your bank account — it can affect how your property is used, valued, and sold in the future.
Know Your Property Type
Whether your property is:
- A primary residence
- An income-producing asset (such as a retail or multifamily building)
- Or owner-occupied commercial real estate
… each scenario requires a tailored approach. For example, easements associated with a lease buyout may affect your property’s title, insurability, or resale value. Buyers may hesitate to purchase a property encumbered by long-term easement rights.
Lease Assignment vs. Easement
When selling your lease rights, you’ll likely be asked to choose between:
- A lease assignment, where the buyer steps into your shoes as the new landlord, or
- An easement agreement, where you grant long-term rights to the tower space and surrounding area
Each option has unique tax implications and legal consequences. At Airwave Advisors, we’ve closed over 100 cell tower lease buyouts and can help you structure the deal to minimize future complications.
6. You Need an Experienced Advocate on Your Side
A cell tower lease buyout is not a simple transaction. These deals involve:
- Complex legal documents
- Long-term easement structures
- Sophisticated institutional buyers
- Ongoing access and maintenance clauses
- Possible tax implications
Going it alone puts you at a significant disadvantage. Without experienced representation, you could be:
- Accepting low-ball offers
- Giving away property rights unnecessarily
- Overlooking restrictive clauses that affect future development
At Airwave Advisors, we specialize in cell tower lease negotiations, valuations, and buyouts. We know how to position your lease competitively, drive multiple offers, and maximize your payout — all while protecting your property and future rights.
The Bottom Line: Should You Sell?
Selling your cell tower lease can be a smart financial move — but it’s not for everyone. You need to carefully weigh:
- Your risk tolerance
- Long-term property plans
- Immediate cash needs
- Tax considerations
- Property-specific impacts
By understanding the full picture, you can make a confident, informed decision.
If you’re ready to explore your options, contact us today. We’ll walk you through your lease, explain your potential buyout value, and represent your best interests from start to finish.
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About Nick G. Foster
Since founding Airwave Advisors® in 2014, Mr. Foster has added value to over 400 clients ranging from the State of Nevada, City of Beverly Hills, to Habitat For Humanity. Mr. Foster focuses on cell tower lease renewals, buyouts, new lease negotiation, and cell site lease management. Prior to starting Airwave Advisors® Mr. Foster founded and led the Cell Site Services Group within nationwide commercial real estate services leader Cassidy Turley (now known as Cushman & Wakefield).
I have a signed lease easement agreement but found out no site carrier have been assigned yet so will this be part of the Testing period , so now I am waiting for a cell site carrier .
This is typically called an “Option Agreement” and we hope you secured a big option payment upfront when signing the lease. Some cell tower companies will just go out and kick tires, others are serious and want to build ASAP.
Hello! I have questions regarding a lease contract that was created by Crown Castle and my grandfather back in 1997 to build a cell tower on his property. His trust transfered it to my dads name as my grandfather passed away in 2018. We have since then been getting numerous offers from solicitors wanting to buy the lease. My father has been contacted by Crown Castle directly asking to be first choice to buy lease if we sell. In 2015-16, the lease was updated into a 40 year contract for a fixed amount (instead of every 5 years like it had been). My father doesn’t know what to do as he is focused on his retirement and home business (he’s 70 years old) and wants me to research for information on what to do. Can you assist with this?
Yes, we would need to review all the documentation. We can certainly help your family.
I’d like to get a lease buyout quote for a property. What is your procedure for this.
Please e-mail is your lease, current rent, and any other information to us for review.
I have a couple lots where maybe cell towers can be located, how can I find out if my locations match the coordinates that cell comapnies need?
Hi Abraham,
To help assist you in your search we have published two articles you may find of value.
Cell Tower Locations | 5 Things You Need To Know (the article includes links directly to top US wireless carriers)
How Do I Get A Cell Tower?
All the best,
Nick G. Foster
Good morning Airwave Advisors,
I have a Client (Dana L. Heideman) who is seeking to monetize his ground (windmill) lease at the Caithness Shepherds Flat. You can see it at https://caithnessshepherdsflat.com. He has a long term lease to Caithness on his 2000 plus acre farm in Ione, OR.
The Client would like to sell his guaranteed lease payments outright just like a lottery winner obtaining a lump-sum cash payment for his lottery winnings in-lieu of waiting 20 plus years to collect the remaining the monthly disbursements of $14,166.66. The $14,166.66 monthly disbursement will increase to $28,333.333 per month in approximately 5.8 plus years.
Dana is a Oregon farmer, and he needs the capital to buy a warehouse and equipment in Long beach, California.
The terms of his ground lease are as follows:
The remaining windmill contract is for a little over 23.2 years.
It can be renewed 2 times and each renewal is for 10 years, totaling to 20 years.
Currently, the Owner gets 2.5% of the revenue for himself which comes to $170,000 per year. In 5 and 2 months the contract payment increases to $340,000 per year.
The contract has already run for 6 years and 10 months.
When the contract completes 12 years, from 13th year on-wards, the payment will automatically go from 2.5% to 5%.
At that time, the receivable will be $340,000 per year.
This payment will continue for the remainder of the term and during the two renewal periods.
Currently, the payment total is as follows:
1) From now to 12 years: (5 years) $170,000 X 5 = $850,000
2) From 13th year to 20th year: $340,000 X 7 = $2,380,000
3) Year 21 to 30: $340,000 X 10 = $3,400,000
4) Year 31 to 40: $340,000 X 10 = $3,400,000
Total worth minimum guaranteed receivable: $10,030,000
I wonder if this is something your firm’s bailiwick, whereby Dana can sell his long-term lease? Thanks in advance!
Kind regards,
Tony Bellenger
Hi Tony,
It was good speaking with you. Good luck with your potential transaction.
All the best,
Nick G. Foster
Yes Mr Foster I have a question it seems like forever but we have a contract with Verison to build a cell tower on our property. But they never let us know anything. We are tired of waiting. What to do.I thought due to the Covid deal I dont know. Someone wassuppose to return our call but never did. Just keep waiting or what? Any help you can share would be great.
Hi Charles,
Unfortunately there is nothing a property owner can do to force Verizon’s hand after a contract is signed. This is why it is of the upmost importance to put language in the cell tower lease agreement stating that if they do not build in say 12 months, the entire agreement expires. If the lease does not have a deadline in the agreement, sometimes I can see these agreements sit with no action on them for years (or sometimes they never build).
All the best,
Nick G. Foster