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How are Cell Site Lease Rates Determined?

May 09, 2016 Info Articles, lease rates, cell site

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.

About TowerPoint Capital:

TowerPoint Capital is a leading institutional investor in and manager of wireless real estate across the United States. Since 2007, we have created long-term value for our landlord and corporate partners by emphasizing the company’s core values Knowledge, Professionalism, Integrity, Partnership. TowerPoint's leadership team possesses fifty years of combined experience, having invested in (or financed) over $1 billion in telecommunications infrastructure and real estate-related assets. TowerPoint is headquartered in Atlanta, GA with satellite offices around the US.