It is estimated that up to one million new cell tower sites will be built by 2030.
What does that mean for a property owner?
It means an opportunity for an owner of land or a building rooftop to generate passive revenue via a cell tower site on that property, and, if structured correctly, the landowner can enter into a long-term agreement that generates revenue today and going forward.
Moreover, the passive revenue that is generating from the cell tower lease agreement, again, if structured correctly, could be increasing based not on the amount of space that is being used and occupied by the cell tower company and/or wireless carrier, but based upon the value or utility that is being derived by that company from the use of that land or rooftop.
Ultimately, a cell site lease agreement is more of a utility agreement than it is a traditional real estate agreement (which most property owners mistakenly base their lease structure on).
We emphasize that a property owner should focus on getting more than just the correct rent amount, and rather focus on the overall structure of the cell tower lease agreement.
If you structure a cell tower lease agreement correctly, you can not only generate traditional rent revenue for years into the future, but an agreement that is tied into a utility (the telecom industry) that is becoming more valuable every day.
Most property owners leave approximately one million dollars of rent revenue on the table when negotiating and structuring a cell tower lease agreement due to the fact that they follow the above-mentioned traditional method of structuring a cell site lease agreement like a real estate lease and not a utility agreement. While the space or area that is being leased by the cell tower or wireless carrier tenant is important, the value or utility being derived from that area or space initially and throughout the overall term of the cell tower lease agreement is the primary method of how much rent the property owner should be getting paid by the cell tower or wireless carrier tenant.
Why are cell tower companies going to grow in profitability? It is because they have structured their cell tower lease agreements in a way that favors the tenant and not you, the property owner.
The definition of insanity is doing the same thing and expecting a different result. If you continue to follow the way others have negotiated and structured their cell tower lease agreements, you will get the same undervalued result and that is insane.
If you have questions regarding a cell tower lease agreement, contact us today.
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