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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.

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Showing posts with label cell tower lease rates. Show all posts
Showing posts with label cell tower lease rates. Show all posts

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.

http://towerpoint.com/cell-tower-lease-rates

Factors that Affect Cell Tower Lease Rates

Cell tower leases are some of the most lucrative deals for property owners. Since many of the ideal cell tower locations happen to be found in private properties, mobile network operators (MNOs) typically enter into long-term lease deals and pay landowners recurring fees in exchange for the right to set up cell towers or cell sites. Some landowners market their properties proactively to attract the attention of MNOs and cell tower brokers, and thereby convert their parcels into income-generating properties.

How Cell Tower Lease Rates are Determined

With cellular phones and other similar mobile devices growing in usage and popularity, many landowners are perfectly poised to generate considerable profits by leasing out their land to wireless providers. Cell towers play a central role in facilitating the voice and data functions of mobile devices. To provide better service to their subscribers, wireless companies actively scout for available real estate at key locations that make for the ideal cell sites.

In pretty much any cell tower lease agreement, a property’s strategic location directly influences the lease rates it can command. Essentially, wireless companies are willing to pay a handsome fee to lease the rights to set up a cell tower at prime lots with easy access. Meanwhile, similar parcels of land located close to other existing cell towers typically attract lower offers.

Other factors also affect cell tower lease rates. For instance, wireless companies typically want their towers to be built in locations far from residential areas to prevent being an eyesore in the community. Additionally, some wireless companies will insist that their towers only provide their cellular coverage and prohibit the property owner from accommodating other carriers.

Such specifics can be used to a landowner’s advantage when negotiating the terms of a lease. It certainly doesn’t hurt to have a lawyer to outline these details.

From Lattice to Concealed: A Look at Four Kinds of Cell Phone Towers

The article then lists two more types: the guyed cell tower and the stealth cell tower. The former- which takes its name from the wires that support it- has been said to be the most inexpensive of the four types, though it does require more space. The latter- also known as the 'concealed tower'- is made to visually integrate with the locality, whether out of adherence to zoning codes or out of consideration to those who may think it an eyesore; this had led to some rather creative disguises, from cacti in Arizona to even a church crucifix in Florida.

Once you've determined good cell tower lease rates- whether directly with a provider or through established services like TowerPoint Capital- you can expect to see any of these cell towers rise on your property. You can take pride in knowing not just that you've found a way to profit, but also that you're aiding the cause of progress.

http://towerpoint.com/from-lattice-to-concealed-a-look-at-four-kinds-of-cell-phone-towers/
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