The universal question among tower landlords is “how much rent can I get for my cell site lease?” If you are a landlord, you speculate if others are receiving more rent than you. And you question if you are indeed getting your true worth’s value.
According to 2020 statistics, there are approximately 340,000 cell towers in the US. Today, average lease rates can run as high as $45,000 or more per year and as low as $100. Curiously, one site’s lease rate may have little bearing on a neighboring one. The reasons for rent rates operating on such discrepancy depends on many factors. It is why landlords need to weigh all of the dynamics before negotiating the lease.
Fun Fact: Why do a lump sum deal? Because you’re paid 14 to 16 years of annual rent worth in a one time buyout of your lease!
Dollars and “Sense“
Determining Rent for My Cell Site Lease
Cell site lease rates vary according to site conditions.
Rooftop Cell Site
Typically, rooftop sites will give the landlord more bang for buck. Cell carriers are willing to offer more rent for rooftop leases because they are more cost-effective.
Rooftop cell sites do not need towers. Considering the fact that the average cost to build a tower on raw land space is $175,000 or more, there’s no wonder why carriers prefer rooftop sites.
Compared to the complex infrastructure involved in tower set-ups, the rooftop is equipped with cheaper, basic antenna apparatus. With far less liability risks, the insurance expenses are lower. Additionally, rooftop sites are situated in areas of dense population. This guarantees more demand for the carrier’s service. It also assures the carrier of backup maintenance support from other local cell sites. Lastly, the prime rooftop location draws other industry players in, resulting in extra subleasing income for the cell company.
Cell Tower Site
To the uneducated, raw land sites get the raw deals. But the expenses that carriers incur explains the reasoning behind it. The high cost of building a tower is amplified by the installation and maintenance of equipment. This includes electrical, power and telco cabinets, as well as the required enclosures that prevent entrance to anyone besides personnel.
Moreover, the cell tower site is generally a distance from dense population and vehicular traffic. As a result it does not have the same cellular demand as the rooftop. It also does not have the same support of other sites.
Cell Site Lease Factors
Negotiating a lease requires key-knowledge of the many factors that go above and beyond base rent. Leasing issues include complexities that can leave the landlord at a disadvantage if not addressed properly. Utilizing objective consulting services of professionals trained to work on your behalf can ensure you get the most value out of your lease.
Nexus Towers offers transparent guidance and professional services to empower property owners to leverage the highest value from their wireless assets. Our supportive services include PIGEON PATROL (oversight and management), LEASE CONSULTING, LEASE EVALUATION and LUMP SUM LEASE BUYOUTS.
SUMMARY: If you’re like other cell tower landlords, you wonder if you are getting the most value out of your lease assets. As a result of the many complexities, you can be left at a disadvantage. That’s why you need the professional consultants that are trained to ensure you receive the best deal for your site. And that’s why you and others like you reach out to Nexus Towers.