What Determines Cell Tower Lease Rates?

3 Mins read

What determines a cell tower lease rate? The answer is negotiations; this determines the lease rates’ outcome. This process is vital. It determines whether you walk away with favorable terms, or without due diligence, you walk away with unfavorable terms that will impact your assets.

What Determines Cell Tower Lease Rates? 1You have been approached by a person or contacted by an organization (wireless carrier) within this industry; it will be about two things a. Cell tower lease or b. to make changes to 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 a big deal, especially if the property is at a vital strategic point. The wireless carrier will naturally put a lot of stock into it, with its 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. If your property is located at a strategic location, the more valuable it is to the wireless carrier; moreover, they will be more inclined to higher cell tower lease rates.

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

Wireless Carriers (Cell companies) understand this before approaching the landlord of these properties. They also appreciate that property owners will leap at the chance to make extra money; by understanding 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 it; play it smart and have an advisor to guide you, i.e., a cell tower lease consultant.

The frequent mistakes by landlords

No one is perfect; we’re all human and prone to making mistakes. And often, they’re innocent mistakes made. These mistakes can potentially cost thousands during the cell tower lease contract. It’s wise to avoid agreeing to unfavorable terms because they can only yield consequences for 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, graduate, get a job, move out, and start 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 unfavorable terms can not only mean a loss of money, but negative words 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 equipment such as the antenna; the constant intrusiveness of contractors. Without due diligence, you can easily sign 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 Cellwaves cell tower consultants will become extremely handy in negotiations. The construction of aesthetic-looking towers and perhaps a rooftop installation; will require a modicum of patience, plenty of planning, and, most paramount, experience.

The consultant’s role is to guide you, but his primary objective is to preserve the client’s (you) properties and their values, such as their aesthetic value. 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 often. They’re one-sided, like the abovementioned examples, which can understandably be overlooked during negotiations. These clauses can be extremely wrong and, consequently, be very detrimental to landlords and property owners.

The examples above have the potential to trap property owners with unsightly structures and 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 to avoid problems like those above.

What is the ideal way to negotiate an agreement?

The ideal way to negotiate an agreement is to hire a consultant and then deal 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 of 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 most suitable. Everybody walks away a winner.

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