Why Lease Buyout Companies Buy Cell Tower Leases

By Ken Schmidt | Steel in the Air

One of the most frequent questions we get from leaseholders is “Why do they want to buy my lease?” If you’re curious about this topic, I highly recommend reading a recent article by Eric Overman, CEO of Telecom Infrastructure Partners (TIP). It’s a deep dive into what he calls the “Third Wave” of telecom infrastructure — specifically the global rise of cell tower lease buyout companies and their evolving relationship with mobile network operators (MNOs) and tower companies.

The piece does a good job explaining the history and mechanics of the lease buyout industry, particularly how some lease buyout companies like TIP position themselves as “financial partners” to landowners, promising large upfront payouts in exchange for long-term lease rights. Overman’s article is well written and offers insight into the aggregator mindset.

That said, there’s one big point where I disagree: the idea that “in a rational world, 100% of landowners should sell.” That may be rational for a lease aggregator like TIP — but not necessarily for you.

Lease Aggregators Don’t Always Offer Maximum Value

Companies like TIP often pitch lease buyouts as a win-win — stable, bond-like returns for them and upfront capital for you. But here’s the catch: they tend to work closely with wireless carriers, often agreeing to lease terms that favor the MNO. As a result, their offers may be lower than those from aggressive aggregators who push back on rent reductions or restrictive clauses.

So, while their business model may be “carrier-friendly,” that doesn’t always translate into “landowner-friendly.” If you’re going to part with a high-performing asset like a cell tower lease, you should know you’re getting the best possible price — not just an offer that works for the MNO and the lease aggregator.

Undervalued Leases Close to Expiration? Proceed with Caution

Landowners with leases nearing expiration or currently below market rent need to be especially careful. These situations represent an opportunity — not for you, but for the lease buyout company. If you sell now, the lease buyout company typically gets the right to negotiate a favorable lease amendment — and collect significantly higher rent going forward. That’s additional rent or a higher purchase price you could have realized yourself. Instead, you’re accepting a discounted lump sum today and giving away a more valuable asset tomorrow. This is one of the most common ways landowners inadvertently leave money on the table.

Watch Out for Expanded Easements and Overreach

One of the more troubling trends we’ve seen — and that isn’t often discussed — is how aggregators structure these deals. Many don’t just want to buy your lease. They want more: general easements, expanded rights, and future control over your property or rooftop. And they don’t pay significantly more for it. For a small increase in present value, you may be handing over the future telecom potential of your property — especially as 5G densification, small cells, and private networks become more valuable. That’s long-term upside you’ll never see again.

Control, Flexibility, and Future Use

TIP positions itself as a “passive financial counterparty,” but their agreements can be anything but passive. Selling your lease often limits your flexibility, especially after TIP agrees to carrier-friendly provisions. Want to redevelop the property? Lease rooftop space to another provider? You may find out in the future that you gave up that right — or at the very least, you’ll need permission from a third party who’s now in the driver’s seat. Over our 20 years in business, guess how many lease buyouts we have seen unwound? (ONE!)

The Bottom Line

Selling a cell tower lease isn’t inherently bad — in fact, in some situations, it makes perfect sense. But don’t sell just because a cell tower lease buyout company like TIP tells you it’s the logical thing to do. That logic serves their portfolio strategy — but may not serve your best interest.

If you’re considering a telecom lease buyout, make sure you understand the full value of what you’re selling, how the offer compares to others, and what rights you’re signing away — not just now, but for decades to come.

Want help evaluating your options? That’s what we do. At Steel in the Air, we work solely for landowners. We do not work for lease aggregators or tower companies — we work solely in your best interests. Please call us or contact us. We will gladly walk you through your specific situation and advise as best we can – even if it doesn’t result in us earning a dime.