What Determines Cell Tower Lease Rates?

3 Mins read

What determines a cell tower lease rate? The answer is negotiations, this is what determines the final outcome for the lease rates. This process is vital. It determines whether you walk away with favourable terms or without the due diligence you walk away with unfavourable terms that effect will have an impact upon your assets as a consequence.

You have been approached by a person or contacted by an organisation (wireless carrier) within this industry it will be in regards to two things a. Cell tower lease or b. to make changes on an existing cell tower lease agreement. Whichever it is both will result in a very long process of negotiations. It’s only natural because the topic is in itself a big deal, especially if the property is in a vital strategic point and the wireless carrier will naturally put a lot of stock into it; with their own team of professionals looking out for the company’s best interest. Your priority is to leave negotiations with the best terms you can get or at the least, the fairest for your property. Note if your property is located at a strategic location, the more valuable it is to the wireless carrier; moreover, they will be more inclined on a higher cell tower lease rates.

Being knowledgable industry, engineering, wireless technology and most importantly leasing knowledge, will prove to be greatly advantageous during the process of negotiations over the cell tower lease agreement or a cell tower lease buyouts.

Wireless Carriers (Cell companies) understand this prior to approaching the landlord of these properties. They also understand property owners will leap at the chance to make extra money, by having an understanding of what motivates property owners they bank on the likeliness of the initial excitement to get the best of them, so they can take advantage of it. Don’t get sucked into, play it smart and have an advisor to guide you i.e cell tower lease consultant.

The frequent mistakes by landlords

No one is perfect, we’re all human and that means we’re prone to making mistakes. And often they’re innocent mistakes made. Here mistakes can potentially cost in the thousands in the duration of the cell tower lease contract. Obviously, it’s wise to avoid agreeing to terms that are unfavourable because they can only yield consequences, for a lack of due diligence. Understand that the cell tower lease will be in effect for thirty years. Thirty years is a very long time, you’re kids will be grown up, graduated, got a job, moved out and started a family of their own. So you can see how much stock is put into not making a mistake, hence why it’s best to have a cell tower lease consultant with you to offer a second opinion, moreover, guidance.

If the former isn’t enough “perspective” agreeing to unfavourable terms can not just only mean a loss of money but also unfavourable terms could also implicate the following examples. The increase of vehicular traffic coming to and from your property; the lack of, or the minimal compensation to be received for the gradual wear and tear of the property; the expansion of large pieces of equipment such as the antenna; the incessant intrusiveness of contractors. Without the due diligence paid you can be easily signing away more such as certain rights to your property. This will be in effect for the whole duration of the cell tower lease. You’re not going to make any mistakes with a consultant handy.

The expertise of a Cellwaves cell tower consultants will extremely become handy in negotiations. The construction of aesthetic looking towers and perhaps a rooftop installation or whatever it is; will require a modicum of patience and plenty of planning and most paramount: experience.

Not only it’s the consultant’s role to guide you, but it’s his primary objective is preserve his or her clients (you) properties and it’s valued, such as it’s aesthetic value for example. The prevention of unsightly structures will be pre-emptively struck during the negotiations; details such as this can be easily overlooked.

The 30 Year Mistake

Wireless carriers, have got creative with all these clauses and often. They’re one-sided. Like the aforementioned examples above, which can understandably be overlooked in during negotiations. These clauses can be extremely one-sided and as a consequence, result in being very detrimental to landlord and property owners.

The examples above have the potential to trap property owners with unsightly structures, ugly installations on the rooftops thus resulting in the value of the property depreciating; moreover, obscure easements and issues with access. Which can spiral down into a long drawn out legal dispute throughout the following years of the contract. You can see how important it is to have a consultant so you can avoid problems like the aforementioned.

What is the ideal way to negotiate an agreement?

The most ideal way to negotiate an agreement: hire a consultant first, then negotiate with a wireless carrier. The idea behind this is not to do it alone.

When negotiations are taking place, your consultant will review every little detail on the proposal for the cell tower, to identify anything that doesn’t relate to your best interest or at the very least seem fair. Ultimately, your consultant will identify any threats; negotiate the best rate possible or at the very least the fairest. Everybody walks away, a winner.

Originally posted 2019-05-28 14:34:28.

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