Cell Tower Lease Implications question (easement, etc.)

[Tamas Z.]

Hi all,

I wanted to put a question out there, since I know some of you have more experience than I do on this.

My property came with a cell phone tower. That was really convenient, because of the reliable source of income.

Then, all of a sudden, a bunch of options have sprung up, and I need to make a decision soon:

The cell company just contacted me, and asked about updating the lease for the longer term (they're going through a network redesign, etc.)

The options are:

1) Set up a lease similar to what I have now (renewable 5 year terms for around 30 years), but with strikingly lower rent. They say "based on market analysis", but the price they've put out dropped considerably (like, by 25% of the original amount), whcih I don't like.

2) They pay a lump sum, and get a 50 year easement

3) They pay 5 annual lump sums (total is slightly higher), and get a 50 year easement

On the one hand, I'm very tempted by the lump sum options... I could put it towards principal, and be debt-free in a few years.

On the other hand, I worry about the implications that might have when selling the place, because the prospective buyer won't get any money from them, and is stuck with a cell phone tower for basically as long as the company wants. Not sure if that would make the place highly unattractive to buy in 5 years. But then, the neighborhood is just getting into a gentrification boom, so it might not be too much of an issue...

Finally, and I bet non-coincidentally (timing is too close), I got a call from some other company, wanting to buy out the lease. I have no idea what the implications of that are, and whether I should even entertain it.

So, my questions are:

1) What are some general points of advice about which option to take? How would you more experienced people make the decision? I sort of get the implications, but have no practical feel for how much they matter.

2) What's the deal with the companies wanting to buy out the lease? Are they typically sharks to be avoided, or could it be legit, and more lucrative than just sticking with the current telecom? He said their agreement mirrors the lease, so the current company would be obligated to fulfill the terms of their own lease. Sounds like they just want to buy the space...

FWIW: I have about 4 years left on the current term, so one other option is to just do nothing. I don't know yet if I expect to sell before 2021.

Thanks a ton! I love the value I get from these forums.