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This week saw the publication of U.S. cell tower lease rates, the first public disclosure of its kind in the industry. The rates published include data on rents paid by top-tier telecommunications companies including Verizon, AT&T, Sprint, and T-Mobile, and lease pricing for states such as New York, Florida, Georgia, and Washington. The release of this sought-after information provides property owners with a powerful tool for negotiating a lease agreement with telecom providers, or better valuing their property for future agreements.
Cell site leasing includes an agreement much like that of traditional real estate rentals, with landlords who lease their private property to tenants. In cell site leasing, property owners receive payments from telecom providers, who use the property for the construction of cell towers or communication antennae, be they on physical land or a building rooftop. Property can be leased from municipalities, churches, small businesses, private property owners, or even large corporations, and contract terms can vary from months to years. The nature of the agreement and the inherent variability of the leasing market can make this a complicated venture for property owners.
Cell tower lease rates vary greatly, as they are specific and dependent on a number of factors, including the availability of existing infrastructure, the site’s terrain, and market demand for coverage within a given area. Another important variable is the property’s location. Lease rates vary widely between states and even counties within the same state. These rates are impacted by dynamics as diverse as the availability of locations for lease in a given area, as well as the natural terrain present at the property.
Telecommunication companies often base their lease price on how easy it is for them to use the property, and whether it will require substantial investment to make the land or rooftop profitable for their needs. With all of these variables at play, property owners need a strong partner to help value and market their site for cell tower leasing in order to ensure maximum profitability is being achieved.
Currently, there are more than 300,000 cell tower leases in the United States today – a figure expected to grow to 500,000 by 2020, as providers seek more property to meet customer demand for mobile data needs. With the publication of current lease rates by TowerPoint Cell Company, property owners may now be better equipped to negotiate a solid deal for use of their property.
Release ID: 77397