Cell towers can bring incredible opportunities for income to property owners. But do the towers also devalue property?
Unfortunately, there is no one-size-fits-all answer to this question. While in certain cases cell towers could reduce the value of property, in other cases they actually increase property value. Whether a cell site lowers or raises the value of a property depends largely on the negotiations that take place. That’s why using a lease consultant is essential for protecting property owners from the telecommunication companies.
Any property owner considering a new cell tower lease or negotiation should understand the two main factors that affect property value: visibility and future use.
Factors for cell towers devaluing property include size and visibility. Neighbors and communities often protest additional towers going up, finding them both unattractive and unsafe. While the scientific evidence suggests there is no harm caused from cell tower RF signals, buyers may still feel otherwise. Additionally, cell towers that stand out visually may be looked upon as negatively affecting the overall landscape or scenery.
Cell towers that are hidden, undetectable, or placed in areas not highly visible lessen the negative impact to buyers. These cell towers may have a very minor negative impact, if any, on property value. They typically bring the opposite — an increase to value of an area that has previously had inconsistent cell service coverage, because more and more people are dependent on it.
Another important factor to consider is the use of the property, both now and in the future. The cell service provider may require an easement, as well as restricting future uses for the property.
Providers will often negotiate terms that protect their rights during any future sale of the property. Most commonly, the provider may try to prevent the transfer of the Cell Tower ownership during the sale of the property. These terms could impact potential buyers, possibly lowering the value of the overall property altogether.
However, with proper understanding of the site value, and skilled negotiation, a property owner has greater control over increasing value. With expert consulting, a property owner can not only receive higher rent rates during the lease terms, but also protect the rights of the property for both now and the future. It is possible to maintain flexibility regarding the future use of the property, leading to an overall increase in values for property owners.
Property owners need to understand all the factors involved with negotiating a cell tower lease prior to signing any paperwork. By knowing their site’s true value, and having an awareness of the factors that could devalue their property, property owners can make decisions that are financially the most beneficial to them.
Have a cell tower lease offer or renegotiation opportunity? Contact us today for a free cell tower lease review and we will help you evaluate what options you have and what issues may need to be addressed.