If you are approached by a telecom or tower company requesting to lease your land, how do you determine what your land is worth? This is a common question we receive from property owners across the country. It is important to understand that every piece of land is unique. Here are 4 vital things to know when determining the value of your land to the tenant:
- Never accept the first offer! The initial offer presented by a cell phone company or tower company is always substantially below market value. It is important to speak with a cell tower lease expert to find out a fair market value with your cell tower lease. Remember that whatever rate you accept today will be locked in for the next 20 to 30 years. Giving up even a seemingly small amount per month today can cost you hundreds of thousands of dollars over the duration of the lease.
- These companies request more land than they actually need! The majority of representatives for new cell tower development across the country are asking for a 100′ x 100′ leased area, translating to 10,000 square feet that the cell phone company will control for the next 20 to 30 years! In actuality, they really only need a fraction of that amount. They are hoping to secure extra land from you now so that they can sublease to other carriers in the future, leading to their added revenue.
- Remember to secure rent from co-locators! If another carrier wants to co-locate on the tower, you are owed a percentage of the profits. After all, it is YOUR land the cell phone company is using to make this money. Make sure you have a cell tower lease expert engaged in your negotiations to help secure you fair co-location rent and a lease structure that will make sure you get paid correctly (being able to enforce the right is as important as having the right).
- Do not compare your land value to your neighbor’s! One of the most common mistakes we see property owners make is comparing the value of their land to a cell tower landlord down the street’s land value. The fact is most cell tower leases, including your neighbor’s neighbor, were poorly negotiated.
The telecom and tower companies have experts on their side who negotiate thousands of telecom deals a year. When a property owner enters into a discussion with a professional who does this for a living, they are making a costly mistake that can not only cost them money, but can be harmful to them and their property. These telecom professionals are aware of this, which is why the cell tower industry has been, and continues to be, extremely lucrative for tower and mobile carrier companies. Much like the Las Vegas casinos, the odds are always stacked in their favor unless you know their secrets.
The team at Vertical Consultants is comprised of industry experts and master negotiators. Put us to work for you, call us at 877.456.7552 today.