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.

Experts have noted that cell tower lease rates follow a certain pattern. As such, every lessor/property owner would do well to understand the various factors that affect cell site lease rates.

Among other things, property owners should know that the ideal cell tower locations are identified by means of a search ring, an area on the map that indicates where towers need to be built to meet the MNO’s network coverage requirements. Landowners who are interested in hooking cell tower lease deals should first have their parcels evaluated for suitability and location relative to these so-called search rings.

In addition, the engineering team at MNOs would have to gauge the proximity of a given property to other cell sites within the area. If the property is identified as a prime lot with no other similar properties nearby, then it could fetch a higher lease rate. If zoning laws permit, and if access to the property is not a problem, then the property owner could receive an offer.