Should I negotiate a cell tower lease buyout or accept the first offer?

Why first offers are rarely the best offers

Buyout firms expect negotiation. Their initial offer is built to:

• Hit minimum return targets
• Account for uncertainty
• Leave room for concessions

Landowners who accept first offers usually do so because they lack benchmarks, not because the offer is fair.

What buyers assume about landowners

Most buyers assume:

• You have not seen comparable deals
• You do not know the lease’s full value
• You are prioritizing speed over leverage
• You are negotiating alone

These assumptions shape the opening number.

Common areas where value is left on the table

Discount rates
Buyers often use aggressive discount rates that heavily reduce future value.

Renewal assumptions
Many offers assume renewals will not occur, even when history suggests otherwise.

Escalator treatment
Annual rent increases may be undervalued or capped in models.

Rights transfers
Buyers may request rights they do not need simply because they were not challenged.

What negotiation actually changes

Effective negotiation can:

• Increase the lump sum payout
• Improve deal structure
• Preserve key land rights
• Shorten control periods
• Clarify assumptions in writing

Even small improvements in structure can materially change long-term outcomes.

Why leverage matters

Leverage comes from:

• Understanding real lease value
• Comparing multiple buyers
• Knowing what terms are standard and which are not

Without leverage, negotiation becomes guesswork. With leverage, it becomes strategy.

The risk of negotiating alone

Negotiating directly with buyers can feel uncomfortable, especially for churches or public entities. Buyers know this and often rely on politeness and urgency to avoid pushback.

The risk is not offending the buyer. The risk is accepting a deal you cannot reverse.

What professional negotiation looks like

Professional review and negotiation focuses on:

• Benchmarking against real transactions
• Stress-testing buyer assumptions
• Protecting non-obvious rights
• Documenting terms clearly

This is not about confrontation. It is about balance.

What happens if you do nothing

If you accept the first offer:

• You may leave 10 to 25 percent of value behind
• You may transfer rights unnecessarily
• You may lock in restrictions you did not intend

These costs rarely show up immediately. They show up years later.

The takeaway

Negotiation is not about being difficult. It is about being informed.

In a market where buyers expect pushback, choosing not to negotiate almost always benefits the buyer more than the landowner.