What you need to know about Cell Tower Lease Rates so you don’t get ripped off.
Cell tower lease rates vary from only a few hundred dollars per year to several thousands of dollars per month. Because of this wide range, most landowners justifiably do not understand the market for cell phone tower lease rates.
The worst mistake most landowners make when negotiating a cell tower lease is to rely on historical data in their area. Landowners will diligently gather comparable data from cell sites in their area, thinking this will ensure them of a fair deal. Unfortunately, most of these cell sites have rates that do no reflect current market rates or conditions
Important factors cell tower companies consider regarding cell towers:
- Demand
Is the cell tower being built to resolve a capacity issue or a coverage issue? Why does the Carrier need to build this tower in this location?
- Zoning
Is the zoning strict or relaxed in this county or city? Are thereany existing cell tower leasing ordnances already in place?
- Competing Structures
What and where are the other structures in your area? What is the tenant mix on these structures? What kinds of usage traffic are these cell sites getting? How long have these structures been in place?
- Neighbors
How well does your cell site location stack up to your neighbor’s location? How desperate is your neighbor for income versus you?
- Network
How does this site fit into the carriers network? How much flexibility does the carrier have with regard to placing this cell site?
- Market Place
How large is this market place? What is the growth potential for minutes of use? What are the economic conditions in this market?
These are only a few of the many pieces that go into the large complex puzzle of determining cell tower lease rates. Before a landowner enters into a lease that will be set in stone for several decades, one must ask, “Do I possess the necessary skills to negotiate cell phone tower lease rates?” If you cannot answer that question with a confident “yes”, you will easily cost your family and/or yourself tens of thousands of dollars if not hundreds of thousands of dollars over the life of the lease.Once you have signed the cell tower lease agreement, you will be bound to its conditions for the next 25+ years.
Our firm has reviewed 1000's of cellular lease agreements and we have helped our clients close 100's of transactions regarding Cell Towers, rooftop leases, steeples, rent reductions, lease amendments, ground leases, new site negotiations and buyouts from various organizations. We have an extension database of rates nationwide and know the pricing of all the major companies in the industry and I have dealt with them on many occasions.
If you would like assistance with your transactions, please feel free to contact us today for a free consultation.