Answer
Nov 03, 2023 - 11:52 AM
Hi- as a general rule, we are opposed to upfront lump sum payments for cell tower sites. Tower companies like to make one-time offers rather than pay an ongoing lease because it is cheaper for them over the long run. Since most landowners don't know the value on an ongoing lease basis, even fewer know how much the one-time payment should be. In your scenario, we would estimate that an $80,000 upfront payment is the equivalent of $350/mo. lease payment. There are very few areas of the country where $350/mo. would be fair market value. In fairness though, comparing it to the average lease in the US probably isn't appropriate because rural area leases tend to drive the average down while urban leases drive the average up.
The key factor though that influences how much a given site is worth is the presence or lack thereof of other alternatives. If this tower company could go to your neighbor and offer $80,000 and get a 70-year easement, then the value here is $80,000 regardless of what the average rural lease is worth. So I would consider whether or not Verizon and the tower developer would have success talking to your neighboring property owners- and proceed accordingly. Otherwise, you might end up with nothing but a good view of the tower on your neighbor's property.
Hope this helps.
Ken
The key factor though that influences how much a given site is worth is the presence or lack thereof of other alternatives. If this tower company could go to your neighbor and offer $80,000 and get a 70-year easement, then the value here is $80,000 regardless of what the average rural lease is worth. So I would consider whether or not Verizon and the tower developer would have success talking to your neighboring property owners- and proceed accordingly. Otherwise, you might end up with nothing but a good view of the tower on your neighbor's property.
Hope this helps.
Ken
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