Cell Tower Lease Rates And How To Improve Them

When it comes to having a cell tower on your property, one of the most important aspects to consider is that of the cell tower lease rates that are being offered. On the other hand, cell tower lease rates are also determined by other factors that are not often taken into consideration by members of the public.

Existing Infrastructure

In order to function, cell tower sites require electricity. If this is not readily available on a site, it may not be as desirable, and other locations may be considered instead. Determining whether it is economically viable to run electricity to a particular cell site can have an impact on a cell tower lease agreement. Another factor that is considered when determining cell tower lease rates is whether it is possible to get construction vehicles to the site in order to erect the tower. The more difficult it is to access the site, the lower the cell phone tower lease rates will be.

Location of Your Site

An additional factor that affects cell tower leasing is the location of your property. The current value of your property as well as that of surrounding properties can also determine whether you will receive a good lease rate or not. When determining how much they are willing to pay for your property, wireless carriers will also take the amount of existing cell sites in the immediate area into consideration. The more sought-after your particular location is; the more chance you stand of receiving a much higher lease rate for it.

Terrain and Site Elevation

The more level a particular site is, the more likely it is that it will be desirable for a cell tower site. The amount of trees or large rocks that may need to be cleared from a site before construction takes place will also be a deciding factor when it comes to determining lease rates. If a site is relatively level, has good elevation and is going to be easy to access, your chances of receiving excellent rental rates will increase substantially.

An important factor to consider when dealing with a cell tower lease is to find out whether you will be paid monthly or whether you will receive a once-off payment. A once-off payment is usually referred to as a cell tower lease buyout, and if this occurs, you may not receive as much income from this agreement as you would if you were being paid rental on a monthly basis.

Jen Lau
Marketing Director
TowerPoint Capital