Is my cell tower lease buyout offer fair?

When a buyout or prepayment company contacts you with a lump-sum offer, it’s natural to wonder whether the number is fair. The challenge is that buyout firms use complex valuation models most landowners don’t have access to. Their offer may look attractive at first glance, but it rarely reflects the true long-term value of your lease.

Buyers calculate buyouts using a version of cash-flow modeling, factoring in your current rent, your escalator, the remaining lease term, the likelihood of renewal, and the potential for additional carriers to join the tower. They then apply their own discount rate (their required return), which varies widely among firms.

This means two buyout firms could make dramatically different offers for the same lease, sometimes differing by 20–40%.

Here’s the truth: their first offer is rarely their best.
Buyout firms rely on speed and simplicity. The faster you accept, the better their return. They’re counting on the fact that you might be overwhelmed by the contract or unaware of how to compare buyouts.

Many landowners don’t realize that the contract terms themselves can affect the valuation. For example, if a carrier has broad termination rights, a buyer may reduce their offer because future rent is uncertain. If your escalator is low—like 1% or 1.5%—they’ll factor that into a lower valuation as well.

On the other hand, certain elements increase value. A strong escalator (2–3%) typically raises buyout amounts. Subtenant potential also increases the site’s attractiveness. If it’s likely that another carrier will join the tower, buyers will factor this future income into their offer.

Buyers also consider the “churn rate”, the likelihood that the carrier will remove equipment or rebuild elsewhere. If your site sits in a desirable location with limited alternatives, your position strengthens.

All these variables make it almost impossible for landowners to evaluate a buyout offer without help. The key question isn’t “Is this number fair?” but rather: “Is this the highest number available from the market?”
You only know that by creating competition among buyers.

That’s where expert representation makes a major difference. We benchmark your lease, test offers against multiple buyers, and expose the fine print that affects value. Most landowners see significantly improved outcomes once they understand their real leverage.

Before accepting any buyout, get an independent review. You only get one chance to sell your lease rights, and once they’re gone, they’re gone for good.