The question “How much cell tower lease rent should I be getting paid” is by far the number one question that property owners will ask in 2023 and beyond, whether they have been approached for a new cell tower lease agreement or have an existing cell tower lease.
Is there a quick answer to this common question? Yes, there is!
It is the same way the cell tower companies determine the value of their cell tower sites in your area and across the United States.
Cell tower companies don’t look at the value of the cell tower site they have down the road or across town to determine the value of another cell tower they have; rather, they determine the value of each individual cell tower site based upon both the utility of that one cell tower site to their wireless network and what would be their detriment if they weren’t able to have that cell tower site located in a particular location.
It is important that a property owner understands the value and detriment of a cell tower to the cell tower company. It not only measures in the cost/revenue that is associated with that cell tower site, but also the network operations that particular cell tower serves to them and their customers, and what would be the operational diminishment if they could not build a new cell tower site on a particular property, or if they were forced to relocate an existing cell tower.
Property owners are often lead down the path of valuing and ultimately negotiating a cell tower lease agreement based upon a traditional real estate model versus the utility/value model that a cell tower company or wireless carrier uses to determine value.
As a result, more than ninety percent (90%) of all existing cell tower or rooftop cell site agreements across the United States are presently undervalued, and that percentage only continues to increase due to cell tower lease agreements that have been structured in a way that the cell tower company or wireless carrier keeps on adding additional value or rents on their side while the property owner rent stays the same, or sometimes are effectively decreasing over the life of the cell tower lease agreement.
Why does this occur in more than ninety percent (90%) of all cell tower lease agreements?
Simply stated, how can a property owner ever get cell tower rent correct if they are not only going up against a company that values and negotiates cell tower lease agreements every day, but the property owner is playing the wrong game.
In 2023, property owners have the election to make they can follow the cell tower lease agreement model that over ninety percent (90%) of landlord have done prior or they can be the exception and get a cell tower lease agreement that not only gets cell tower rents right on day but throughout the term of the cell tower lease agreement.
If you have questions regarding a cell tower lease agreement or, more particularly, the cell tower rents you should receive, contact us today.
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