Considering a cell tower lease in 2020? Whether you are negotiating a brand new contract or reviewing a cell tower lease renewal, don’t sign anything until you know the full value of your site!
As we usher in a whole new decade in 2020, the constantly changing technological advancements continue to impact our lives. One of the biggest changes we’ve seen in the past ten years is the growth of cell towers. As telecommunications companies race to keep pace with 5G and new technology, the value of cell towers keeps rising.
As the nation’s leading cell tower consulting firm, we believe cell towers will be worth more in 2020 than ever before. Here are 5 reasons why.
- Wireless Data Demand: Wireless data traffic is expected to increase 30-40% per year in the United States by 2025. Data growth secures cell tower dependency, and dependency means more value.
- 5G Expansion: Cell towers provide the most cost efficient mix of coverage and capacity. While the mini-towers buildout focuses on the speed side of 5G, traditional cell towers will allow wide and continuous coverage.
- Pricing Power: The “Big 3” tower companies have obtained a strong position in the telecom sector. More than any other real estate sector, asset ownership is concentrated in the Big 3 tower companies.
- Network Upgrades: 5G is all about increasing the density of wireless networks. The wireless carrier’s equipment 5G upgrades and adding tenants to existing cell towers produce cell tower revenue with limited costs.
- Increased Investment: Annual wireless capital spending continues to grow totaling approximately 35 billion dollars in 2019. Increased investment by wireless carriers translates to increased cell tower need and, as a result, increased value.
Property owners and real estate investors have more opportunities than in previous years. However, too many people leave money on the table during their negotiations. If you don’t know the true value of your cell tower lease, especially in this new era, contact us today for a free evaluation!