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.