Thanks for requesting a Rent Report but one of the biggest mistakes that most property owners make is they continue to rely on “Market Rent” figures when determining how much to charge a cell-tower company.
To be crystal clear, there’s no such thing as market rent when it comes to a cell-tower lease. If you try to use comparable rents in your area, you’re using data that will only cause you to perpetuate under-valued rents that have been paid to property owners for the last few decades.
Simply put, what another property owner may have been paid doesn’t determine the value of your cell-tower lease. Vertical Consultants achieved an average of a 322% immediate increase in rents for its clients and it was not because we used Market Rent.
Why? Every cell tower site has an individual value and as well has a different impact on every individual property.
Doubt Us-The Numbers Don’t Lie?
If you doubt that relying on Market Rent figures is the wrong way to negotiate your cell-tower lease, look at the revenue and profit garnered by the companies that owned the majority of North America cell towers in 2013. The largest companies averaged almost $3.0 billion in annual revenue. More impressive is the gross profit margin on this revenue was approximately 74%.
How can a cell-tower company achieve such profit? It’s a simple formula that has been used since the beginning of time: knowing a lot more than the other guy.
This doesn’t mean that property owners are good at what they do, but at its core and especially when it comes to value, a cell-tower lease is not a real estate deal, it’s a telecom one. The cell-tower companies understand that and so should you.
They say the definition of insanity is doing the same thing over and over again and expecting a different result.
That is basically what property owners of all types have been doing since the first cell-tower lease was consummated back in the 1980s. This will continue unless property owners look beyond Market Rent.
Contact us today and we will answer your questions and see what you should receive as rent not only on day one but throughout the term of your lease.
Vertical Consultants is always open to provide you not only references from clients we have assisted but we will let you speak to them directly and learn how looking beyond Market Rent was the best decision they made when it came to their lease.