How Much Cell Phone Tower Rent Should I Get?
This is the most frequent question we get from property owners across the United States. When property owners ask about cell phone tower rent, they are often expecting an answer based on what others are being paid. While that is a quick answer, it is the wrong one. Every cell site has its own individual value — each and every one of them.
The cell phone tower leasing industry is unique from traditional real estate because it does not matter how much rent your neighbor makes. Your land and your lease agreement will be determined separately from theirs.
We will send you a report, free of charge, that shows the location and rent rates of cell phone towers near you. The report is a great starting point to help you determine how much rent is appropriate, but you should not use this as your guide to negotiate the best rate for yourself.
How Much Value Does Your Location Bring?
The following are 3 of the factors that play a part in how much cell tower rent you should receive from leasing your property:
- Solutions: What problems does your property solve for a cell tower company or wireless carrier? Every cell site is built or installed as a solution to high demand for wireless coverage/data consumption in a particular area. While rural settings with small populations usually bring in lower rental prices, some have the same value as densely populated, urban areas due to certain restrictions in the immediate areas. It is all about what a property owner is offering a cell tower company. Remember solutions.
- Options: Understanding what “real” options a cell tower company or wireless carrier has in an area is key in understanding what leverage a property owner has in negotiating the rent. Often, there will be properties near you that may seem to be the same as yours, but if you know what you are looking for, there are always subtle differences. Those differences determine why your property was selected and why you may have the ability to negotiate a better rental rate than expected.
- New vs. Existing: A property owner normally has the ability to negotiate a higher cell tower rent on an existing cell tower lease when they are being asked to extend the current lease term. The cell tower company is vested in the site and if the lease is not extended, the tower site will need to relocated, which can be costly. Recent reports place a cost of over $300,000 to relocate a single-tenant tower, with that amount increasing greatly the more tenants that are located on the tower.
Above are just a few of the factors that need to be reviewed when negotiating a new or existing cell tower lease. The cell tower companies have experts working for them, shouldn’t you?
Remember, you don’t get the lease you deserve, you get the lease you negotiate. Contact us for a free lease review or to discuss your potential cell tower lease agreement.