Cell Tower Land Lease Rates
You have land and the cell phone carrier wants to lease it from you. What is your land worth? This is a common question that we receive from property owners across the country. It’s important to understand that every land parcel is unique. To help you get started we want to share with you 4 Things You Should Know With Cell Tower Land Lease Rates.
1. Always Counter Their Initial Offer
The initial offer presented by a cell phone company can sometimes be 300% or more below market! It is important to speak with a cell tower lease expert to secure a fair market deal with your cell tower lease. Remember that whatever rate you lock in today will be locked in for the next 20-to-30 years. Giving up even $100 a month can cost you over $50,000 over the life of the lease!
2. Carriers Ask For More Land Then They Need
Most representatives for new cell towers across the country are asking for a 100′ x 100′ lease area. That is 10,000 square feet, of your property, that the cell phone company will control for the several decades. Here is what they don’t want you to know – they really only need approximately 300 square feet.
So Why Are They Are They Asking For So Much Land?
They are leasing extra land from you now to sublease to other carriers in the future. By controlling that much of your land now, they will receive 100% of the land and tower revenue from a future subtenant (which will likely be another wireless carrier). This leads us to our next tip…
3. Secure Co-location Rent
If another tenant want’s to co-locate onto the tower you and your land, you deserve a piece of the action. After all, it is your property that the cell phone company is now making money on. Make sure that you have a cell tower lease expert, such as Airwave Advisors, in order to help secure you with lease rates, including those relating to future income.
4. Land Lease Rates Are Not Comparable To Your Neighbor
One of the most common mistakes that we see property owners make is when they call other property owners who have cell tower leases to see what they are getting paid. Our intuition tells us this is how we can sample the market and to compare our offer to others receiving cell tower rent. However, the fact is that most cell tower leases – including the one down the street with your neighbor – were poorly negotiated.
How Do I Get A Better Deal?
The carrier’s have cell tower lease experts on their side who negotiates hundreds of deals per year, thousands over the course of a career. Unfortunately, when a property owner enters into discussions with professionals who do this for a living, they are outmatched from day one and will leave money on the table, even though they may think it was a great deal. Cell phone companies know this, which is why the cell tower industry is so lucrative for tower companies – and has been for decades.
The Cell Tower Companies Have Experts On Their Side, Shouldn’t You?
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About Nick G. Foster
Since founding Airwave Advisors® in 2014, Mr. Foster has added value to over 400 clients ranging from the State of Nevada, City of Beverly Hills, to Habitat For Humanity. Mr. Foster focuses on cell tower lease renewals, buyouts, new lease negotiation, and cell site lease management. Prior to starting Airwave Advisors® Mr. Foster founded and led the Cell Site Services Group within nationwide commercial real estate services leader Cassidy Turley (now known as Cushman & Wakefield).