Now, the question for every cell site lease landlord is should you consider selling your lease or holding onto it? To answer this question, we encourage site owners to always look for the highest and best use from your wireless lease asset. If you own property in a high value real estate market, like New York City or San Francisco, with a rooftop installation and are planning to sell the property in the next few years, we suggest holding onto the lease to achieve the highest and best use at the sale.
If the above scenario doesn’t apply to you, we encourage site owners to weigh the pros and cons of selling their cell site lease. Selling a wireless lease can bring major incentives to the site owner. One major incentive is tax savings. Through the Lease Buyout process, the deal could be structured in such a way that limits or defers the taxes paid and could provide substantial savings to the ordinary income tax you could be paying now. Another major incentive to selling a cell site lease is the opportunity to reinvest the lump sum of cash. With the right investment strategy, it could significantly outperform the rent currently being paid under the lease agreement while also reducing the risk. There are many investment strategies available today that can secure your principal while outperforming the lease payments you are currently receiving.
As you can see, there is a long list of options and incentives available to site owners if they do decide to sell their wireless lease. If you are interested in examining if a lease buyout is the right decision for you but not sure where to start, give us a call and we will be happy to help.
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