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Cell Site Lease Rates and Inflation

Land owners who are approached with regards to hosting cell tower equipment on their properties are normally so impressed with the idea of receiving unexpected rental income that they end up signing the first rental agreement that is offered to them. However, this is not recommended, as it is usually possible to negotiate far higher rental rates if the services of companies who specialize in cell tower lease buyouts are utilized.

Negotiate Annual Rental increases

As with the price of any commodity, inflation dictates that the cost of it should rise each year, and rental payments should certainly be no exception to this. However, when it comes to site lease rates, most cell carriers try to pay land owners as little as possible for the use of their properties, while they earn billions of dollars in profits each year. Property owners should hire the services of an experienced cell tower lease consultant or a cell tower management company to take care of the contract negotiation process on their behalf, as this will ensure that fair annual rental increases are included.

Factors Affecting Rental Rates

One of the main factors that affect rental rates for cell tower sites is ease of accessibility to the site. For example, if sites already have amenities such as electricity and water and are is situated in a built-up areas, property owners will receive far higher rental rates. If there are no other cell sites in the nearby vicinity, this factor will also drive up rental rates substantially. Companies who specialize in cell tower lease buyouts will always be willing to provide property owners with honest estimates regarding the potential rental that could be received for the use of their properties.

Before signing any paperwork pertaining to cell tower lease buyouts or having new cell tower sites built, property owners should seek out a professional opinion from reputable tower management companies instead of directly from cell carriers.

How Are Cell Site Lease Rates Determined?

When it comes to cell site lease rates, most land owners are not sure of how these are determined. However, there are a few important factors that cell carriers and tower management companies take into consideration when determining them.

Site Accessibility and Topography

Sites that are significantly higher than those surrounding them will normally be more desirable for cell tower companies than those that are situated lower down. A site that is situated on a hilltop, for example, will be of more value than one in a valley, which means that the land owner will receive a higher rental rate for it. If a site already has existing infrastructure, such as electricity, water and even a tower or building that can be used to house the required antennas and other cell equipment, the land owner will also receive a much higher rental amount for it. Sites with no existing infrastructure and that are difficult to access will receive far lower rental payments.

Negotiating Better Rates

Although it may sometimes be possible to negotiate better rental rates, it is not always possible – especially for property owners. As a result, many of them tend to opt for cell tower lease buyouts instead. If land owners are approached directly by cell carriers with regards to cell tower lease buyouts, they need to ensure that they hire an attorney to handle the process for them. It is actually better for property owners to deal with reputable tower management companies when opting for cell tower lease buyouts, as this ensures that they receive the best level of financial compensation possible for the deal.

When handled by tower management companies, cell tower lease buyouts are usually a quick and smooth process. Once the deal is finalized, land owners can then use their cash lump sum in any way they see fit.


What Wireless Carriers Look for When Checking out Cell Tower Locations

There’s no denying how landline technology has fallen behind cellphone technology. Still, according to Eric A. Taub of the New York Times, mobile subscribers often experience problems with their cell phones, including dropped calls and poor voice quality. Taub further writes that to combat such problems, subscribers can consider building their own cell towers, which resembles a regular wifi router. Yet the burden of improving cell phone signals should not fall on subscribers but on telecommunications carriers themselves. For this reason, wireless carriers must do all they can to secure ideal cell tower locations and thereby provide subscribers with smooth and uninterrupted network coverage.


Cell Tower Lease Law Basics: Towers Can’t Be Banned but Can Be Changed

Investors looking to get a good cell tower lease on a particular property must learn about zoning regulations in the area. Although local ordinances vary, most communities prohibit the construction of cell towers close to residential communities and public areas. Instead, telecommunication companies are encouraged to erect their towers close to industrial and commercial areas. Most local laws also prohibit building new towers if structures like water towers and rooftops can integrate telecommunications equipment, which can be an advantage for some companies because new construction is often costly.

You can consult investors like TowerPoint Capital to learn more about cell site infrastructure as well as what a smooth cell tower lease buyout entails.


Residents, Landowners Join the Great AT&T Sale of Cell Tower Leases

John Pestle, a telecommunications lawyer based in Grand Rapids, MI who handles the sale of cell phone tower leases, explains three major factors that must be considered when setting up a cell tower on any property. First, the site acquisitions company representing the wireless service provider determines the strategic importance of the land for a cell tower. Towers near major infrastructures such as freeways can be more valuable for telecommunication companies. Second, the company reviews all of their cell site candidates as there may be other more attractive locations for cell sites elsewhere. Third, cellular tower investors like TowerPoint Capital may be able to review the cell site and determine whether the location is viable for a new tower lease. The latter option is more attractive because it entails less cost for the company.


A Cell Tower in Nature’s Clothing: Faux Towers as Profit Opportunities

Cell towers as inconspicuous trees, flag poles, and cacti provide that a good cell site doesn’t have to be remotely located when it can actually be found close to home.

The art of cell tower disguise isn’t a novel invention. Indeed, as early as the 1990s, urban planners were already concerned about the visual pollution steel towers pose. In South Africa, for instance, telecommunication companies were told to make cell towers more attractive in relation to the landscape.


Concealed Coverage: How Carriers Select Prime Cell Site Locations

Landlords and wireless carriers need to abide by strict requirements before a piece of land can be considered feasible for cell tower construction. Even if such conditions are met, mobile carriers need to be convinced that the site is indeed in an ideal location. Site owners looking to make the most out of a cell site lease could benefit by coordinating with a trusted and reputable firm like TowerPoint Capital.

Leasing out land for cell site use is a lot harder than it sounds, especially since mobile carriers can be very picky. Even a strategic rooftop cell site proposal needs to be marketed properly in order to attract wireless service providers. Landlords can also benefit from professional legal aid when negotiating any cell site lease agreement or sale.

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