How Long Will Cell Towers Be Around?

Many landlords that had a cell site lease with Nextel, Cricket, MetroPCS or US Cellular are probably regretting not selling their lease when they had the opportunity, since they would have received a large lump-sum and avoided all of the risk of decommissioning.

Could your site be there for decades into the future? Certainly, that is possible. However, there are many factors that can influence how long a communication company will continue to lease and operate a tower at a particular location. The location of your tower is especially important, as sites in areas with strong population growth, high demand for wireless coverage, or limited alternatives may remain valuable for many years, while other locations may eventually become less critical.

In addition, mergers and acquisitions within the wireless industry, changes in the financial strength and credit ratings of individual carriers, advancements in technology, evolving network requirements, and the growing use of satellite-based communications can all affect the long-term demand for a particular tower site. With so many variables, there is simply no reliable way to predict more than a decade into the future—and even a ten-year projection can be uncertain.

For property owners, the key is to understand the current and potential long-term value of your communication site and negotiate lease terms that protect your interests.