If you are property owner, public entity or water utility district with a water tower structure, you are sitting on a proverbial gold mine of cell tower income. In fact, there may be communications companies currently leasing the right to attach their equipment to your water tower. Do not let these companies continue to underpay for the use of your facility.
- Why Own When You Can Rent? Leasing space on a water tower is more economical and more efficient for wireless carriers, and therefore, very appealing for a cell site location. For example, wireless carriers can save hundreds of thousands of dollars by utilizing an existing water tower, eliminating the need to build a new 150-foot cellular structure. Secondly, wireless carriers can achieve their objectives in a shorter amount of time by avoiding lengthy delays which are typically associated with new construction. Gaining approval from city councils and securing zoning permits is much easier by utilizing an existing water tower. By leasing space on a water tower, wireless carriers benefit with lower installation costs and paying minimal rental amounts to property owners.
- Just Say “No” To Market Rents: Municipalities often rely on so-called “market rents” to determine how much rent they should collect from a wireless carrier. While the amount of space leased is an important factor in ascertaining rent, the most significant variable is the value being derived from the cell tower today and into the future. Although municipalities have city planners and urban developers, most do not have the benefit of telecom expertise or experience within the industry. Therefore, the inability to accurately determine a rental amount, reflective of the value to the wireless company for the utilization of the tower, often results in undervalued lease agreements.
- It Is Not Better To Give Than Receive: It can easy for muncipalities to place too much emphasis on the amount of rent they will be collecting from wireless carriers and not enough attention to what they will be giving up as a result of the agreement. Even with the assistance of their attorneys, municipalities often sign agreements that will be problematic in the future. The temptation to collect “easy money” can overshadow the importance of securing the future of the water tower with structured lease agreement that includes terms for today and the life of the lease. A municipality must understand not only the terminology within the agreement, but also why and how the wireless carrier will utilize this same language in the future. The wireless carriers have experts on their side. Shouldn’t you?
Call today for your free consultation and for more information on how Vertical Consultants can optimize the value of your water tower lease.