TowerPoint Capital (formerly Communications Capital Group) is a leading institutional investor in cellular site locations across the United States. Our mission is to leverage our significant knowledge base to create long-term value for our landlord and corporate partners.

Visit www.towerpoint.com for more details.

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.


Template by Clairvo Yance
Copyright © 2013 TowerPoint Capital and Blogger Themes.