Cell Tower Lease Rates In 2015 Are Rising
The cell tower market is quickly shifting in favor of the property owner. Cell tower lease landlords, like you, are becoming savvier as to what they should actually be receiving as a fair cell tower lease rate in 2015. The change in tide is a reason to celebrate! For far too long we have received calls from landlords who share with us that they are only receiving $500.00 per month for their cell tower lease, or that they previously signed a rent-reduction lease amendment with MD7 or Blackdot Wireless. If you watch the TV show Shark Tank on ABC, in the words of Mr. Wonderful, “Stop The Madness!”.
As a cell tower landlord advocate, Airwave Advisors® is on a mission. We have created a proprietary database that tracks cell tower locations, rents, and buyout prices. To empower property owners like you with market information, thereby contributing to the wealth of the landlord community as a whole. Here are five things to look out for with cell tower lease rates in 2015:
1. Your Cell Tower Lease Is Worth More Than You Know
Cell tower lease rates are rising, lease renewals are common, and your cell tower lease is worth more now than ever. We are able to achieve significant gains with the property owner’s cell tower lease rates. Don’t leave money on the table, have your cell tower lease reviewed by a cell tower lease expert such as Airwave Advisors today.
2. 10% and 15% Term Escalators Are Out – Annual Escalators Are In!
Each year we see the cell tower companies and carriers try to get better and better deals for themselves. The introduction of the 10% or 15% term escalator is creative on the side of the tenant, however, a bad business move on the side of the landlord. Does US inflation wait five years for you, or is it on-going? If inflation doesn’t wait for you, why should your rent escalator? Don’t let the double-digit rent increase numbers fool you, waiting five years for your next rent increase is for the birds.
3. Lease Renewals Present An Opportunity To Significantly Increase Rents!
Much of the cell tower networks were constructed in the 1990’s. Those leases are now coming up for renewal and we see proposals, provided to our clients, to continue with no increase, or even to reduce the rent. Often, I think the carriers just want to take advantage of property owners, after all, they are looking out for their bottom line. Make sure you are looking out for your bottom line and have your lease renewal opportunity reviewed by Airwave Advisors.
4. Rooftop Cell Site Upgrades Are Time-Sensitive Opportunities
All major US carriers are upgrading their networks and in many urban markets, that means rooftop cell sites. We often see the carriers present their upgrade projects with a vague “consent letter” and no plans attached. Don’t sign a document that you don’t fully understand. Request drawings showing exactly what the carrier plans to install on your property and have those drawings reviewed by cell tower lease experts such as Airwave Advisors. You likely have a time-sensitive opportunity to increase your rooftop cell site rent!.
5. If You Are In Talks With A Cell Tower Company, Hire An Expert
Airwave Advisors combines over 25 years of industry experience in order to help cell tower landlords like you to maximize their wireless leases. We assist private landowners, commercial real estate owners, municipalities, and anyone else who either has a cell tower, or has been contacted for a cell tower. 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).