What are the 2020 average cell tower lease rates? This is a common question that we get asked. As you can imagine, the answer is based on a variety of factors – some of which you can control and others you cannot.
Tower Advantage possesses the knowledge, expertise, and professionalism to negotiate the best lease possible on your behalf. Moreover, we do not just protect your economic rights, we look at the entire lease to ensure you are fully-protected.
There is a wide range of cell tower rent estimates on the internet. If you are looking for Verizon lease rates, AT&T ground lease amounts, or any other rental figures, you have come to the right place. However, there is no simple answer to the question about how much rent you should be getting paid. That answer depends on all of the facts surrounding your particular situation. Below are some of the main factors that we use as a cell tower expert:
Factors for 2020 Cell Tower Lease Rates:
1. Location
Where is the cell tower located?
The location of the cell tower is important to determine its value. A cell tower lease in a busy, major metropolitan area will pay more than a lease in a rural area with not nearly as much traffic. The reason for this is simple – demand. More users in a specific area that are accessing the site make it more valuable to the network.
In addition, if a cell tower is at a higher altitude as compared to the surroundings, or is simply taller than others in the vicinity, there may be more potential value in the lease. This is because it can potentially service a larger coverage area and may also have the ability to generate more revenue for the tenant. There is also the possibility that the more space at the site, whether on the tower or on the building, additional wireless subtenants will add to its value.
In many areas, the zoning laws may also play a key role in the value of any particular cell tower lease. If zoning regulations prohibit certain types, or have limitations on uses, it could either help – or hurt – a landlord depending on the situation.
2. The Cell Tower Tenant
Who is your cell tower tenant?
Normally, the cell tower tenant is a tower company (e.g., Crown Castle) or a wireless carrier (e.g,. Verizon). The type of cell tower tenant helps determine the value of the site as it relates to their overall network. Consequently, there may be different limits to the rent amount based on budgets, alternative locations, opportunity cost, etc.
Over the last two decades, the experts at Tower Advantage have worked with every type of cell tower tenant and negotiated every type of lease. As a result, we can provide you valuable insight into your particular opportunity, whether you are looking for ground lease rates, rooftop cell site information, or anything else.
3. The Owner of the Cell Tower
Who owns (or manages) the cell tower?
This is, of course, in contrast to the owner of the property – which is you, as the landlord. If the owner (or manager) of the tower is a tower company (e.g, American Tower), it can often lead to a very different negotiation in comparison to a wireless carrier (e.g, AT&T). Suffice it to say that every telecommunication company works differently, and each has different parameters when it comes to negotiating cell tower leases.
Unfortunately, many landlords contact us after they have already signed their lease to inquire about all of their options. At that point, it’s too late! Instead, join our alumni of clients to whom we have provided expert representation.
4. Whether There Are Any Cell Tower Subtenants
Is there one – or more – wireless subtenants on the tower?
In addition to the main tenant, if there are subtenants with their equipment on the tower (known as co-location), the cell site lease will be more valuable. Each subtenant will pay the tenant additional income, but most of the time, the property owner does not share in that additional revenue.
Many landlords ask us if they can receive some of the sublease rent associated with those additional carriers. Again, the answer will be dependent on many variables. These include: (1) how much rent, and sublease rent, is currently being paid; (2) who are the subtenants; (3) who has the best leverage in the negotiation; (4) opportunity cost; etc.
Schedule your free consultation today. Make sure you are not leaving “money-on-the-table” when it comes to your lease negotiation.
5. New Construction versus an Existing Cell Tower
Is this lease for a new tower being built, or is it for one that has been in existence for several decades?
As can be expected, typically, you have more leverage when negotiating a cell tower lease that will soon be expiring versus one where the cell tower has not been built yet. That is because, for an existing lease, the tenant has to take into account potential relocation and decommissioning costs. In contrast, for a new tower, there are minimal costs for a wireless carrier to look at your neighbor’s property and proceed with them instead. However, this is a broad generalization and is not always the case.
As an example, we often help property owners increase their rent by more than 100% of the amount they were initially offered on a new lease. In fact, this is even when the cell tower company has other options nearby to build the site. One reason is because our experts were once on the other side of the negotiation table. By previously representing the billion-dollar telecommunication companies, we know what to look for in a cell tower lease opportunity.
Alternatively, cell sites are relocated when the long-term financials do not make sense for its continued operation. The tower companies and wireless carriers use experts to negotiate their leases so they can get the best lease possible. That’s the reason you should have the same expert representation when trying to negotiate your 2020 cell tower lease rates.
Contact us today if you are negotiating a brand new lease, extending a lease, or if you just need some objective feedback.
Contact our experts at Tower Advantage
for your free consultation on cell tower lease rates.
(833) MY-TOWER
(833) 698-6937
