Cell Site Leases as an Asset Class

December 29, 2017

Cell Site Leases as an Asset Class

The world of investment goes beyond stocks and bonds. As demand for cellular network usage and the expectation of uninterrupted access to the internet continue to grow, cell tower and rooftop antenna leases become an increasingly strong financial asset and a great way to diversify your investment portfolio. Cell towers need to be placed close to each other so users can stay connected as they travel across the phone grid. There are millions of cell sites across the world, which translate into just as many investment opportunities. If you were approached by a wireless carrier to have their infrastructure installed on your property in exchange for a monthly payment, would you consider entering into a cell tower lease agreement?

Whether your answer to that question is a definitive yes or you’re still weighing your options, APWireless Canada can provide you with all the information you need to make up your mind.

A Cell Site Lease as an Investment

Is a cell tower or rooftop antenna lease an asset you would be comfortable investing in? Typically, wireless carriers will approach you if they are interested in leasing your farm, rooftop or sports club to install their telecom infrastructure. Once you agree on the terms of the cell site lease, you will start receiving rent for a predetermined period of time. You may then choose to hold on to your new asset as a way of diversifying your portfolio, or you can explore what further benefits you can reap from your newly-acquired asset, such as receiving a lease prepayment.

Risks and Benefits of Owning a Telecom Tower Lease

If you already own an asset like a cell site lease, do you know what the risks and benefits are to it? One of the main benefits of owning this type of asset is diversifying your investment portfolio: a cell tower lease represents a portion of your personal wealth. However, it carries risks, much like every other financial asset. The main risks involved are rent reductions by the wireless carrier or decommissioning of the cell site. In the event of this happening, you would stop receiving your rent entirely.

Cell Tower Lease Buyout

Would you want to trade your asset, if you could, in order to reduce the risk of losing it one day? Given that the risk of decommission is real, you may choose to liquidate your asset by receiving a lump sum prepayment from an expert in the field like APWireless Canada. Once you receive this money, you may reinvest it in your business, buy a house or travel somewhere you have always wanted to go.

Investing in cell tower or rooftop antenna leases can be a great way to gain a foothold in the growing industry of wireless technology. If you decide to invest in these assets, you can diversify your financial portfolio. Keep in mind you will then have the opportunity of liquidating your asset by accepting a premium from an industry expert, and reinvesting the funds from a lease buyout in future business ventures, real estate, or saving for retirement. As long as the demand for wireless communication networks continues to rise, the chances of being approached by wireless carriers also increase. With a cell tower on your property, you have the highly lucrative opportunity of trading the rent you receive from the carrier for a lump-sum prepayment.

Cell Site Leases as an Asset Class was last updated January 5th, 2018 by APWireless Canada
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