Using land for various aspects of telecommunications is an approach that can have long-term benefits when utilized wisely. This is also one of the reasons why having a current cell tower lease puts you in a good position.
Successful businessman, Steven Dodge was able to grow his fortune by increasing his participation with these leases. This late Boston entrepreneur began with radio operations in mind but found the goldmine that cell towers provided.
It may be difficult to see all of the various ways to increase your profitability with this type of lease, which is why it’s important to speak with cell tower lease consultants. Experts, like those on our team at Vertical Consultants, specialize in teaching clients the real true value that cell towers offer for years to come.
Below are 4 lucrative reasons your existing cell tower lease is already a goldmine:
1 – Accommodating Many Uses of 5g Technology
According to Forbes, 5G technology was one of the top issues discussed at the Mobile World Congress. It is expected that this capability will transform cell phone use, as well as all relevant technology. Cell towers that can accommodate this use have instantly become more valuable to a host of different industries and companies. That makes your existing tower more valuable for telecommunication companies as well.
2 – Costs to Find New Cell Towers
If you have an existing lease, you may have received a letter from the cell tower company indicating that you should automatically accept a renewal early, locking you in to additional years at your current rate. The letters may even imply that other tower sites are just waiting to for your tower lease, should you choose not to renew.
This is a proactive strategy used to protect the telecommunication companies. In reality, cell tower companies prefer to avoid finding new tower sites due to expense, zoning approval and negotiations with new lease owners. It costs a cell company approximately $250,000 to replace a cell tower with a new one at a different site. Therefore, most companies are willing to pay a lot of money to avoid that.
3 – Costs for Moving or Removing Towers
It costs a lot of money to move cell towers or to build new ones. In fact, the cost is so large that most telecommunication companies are willing to negotiate your existing lease rather than look for an alternative site.
4 – Benefits of Renting to Multiple Carriers
The possibility of appealing to multiple carriers could likely turn into an enormous benefit financially and may lead to your acquiring more leases. Existing towers can add antennas and other companies are willing to pay large rents on those to avoid the aforementioned costs of building new towers or finding new sites.
You don’t have to know all of the initial benefits associated with these leases to end up with a goldmine. Fortunately for business owners, property owners, and real estate investors, collaborating with cell tower lease consultants can be the only step you need to take to tap into the true value of your existing lease.