Yes, cell towers are ugly. But can they provide beautiful rental stream?
Read the benefits of leasing an ugly cell tower on your property.
Let’s discuss the benefits of leasing an ugly cell tower on your property. Cell phones are not a fad. The smartphone has changed the way we work, communicate and has become a staple of our everyday lives. There are approximately 350,000 cell sites and cell tower locations in the USA with an estimated 1-million additional 5G nodes and small cell antenna sites to be deployed over the next several years. The wireless industry will need to lease many more locations to install the one million estimated new 5G sites.
Utility poles owned or controlled by state or public entities in right of ways (ROWs) will see many of these additional small cell site or 5G installations. However frankly the wireless carriers have probably “shot themselves in the foot” by lobbying for sharp price controls on utility poles. When a wireless carrier like Verizon, AT&T or T-Mobile for example is only willing to pay less than $500 per YEAR to lease a 5G small cell site to a city or utility company because they say it would not be financially feasible to install tens of thousands of these sites, they entities they are trying to lease space from lose interest and are not incentivized to offer assistance. The carriers will likely hit roadblock after roadblock because they are being penny wise and pound foolish.
This wireless carrier mentality will open up opportunities however for private property and building owners who are willing to lease space for a 5G site or small cell. The carriers will need to deploy a million of these sites. They all will require a lease.
Cell towers pay more money per square foot than commercial real estate in Manhattan.
- Although cell tower lease rates are not determined on a price per square foot basis, leasing space for a cell tower is a great revenue stream if the deal is properly structured.
Keep collecting rent or sell your cell tower lease rental stream
- A cell tower lease can pay you rent potentially for a lifetime. Some cell tower leaseholders want to cash out early and sell their cell towers for a lump sum or installment payments, called a cell tower lease buyout. there are advantages and disadvantages to these kinds of transactions.
The uglier the better, towers that is.
We love cell towers, especially the very ugly ones with many antennas installed and those loaded with base station equipment. We help landlords fix ugly cell tower leasing problems quickly and effectively, saving our clients time and money when we help them to maximize their cell tower lease agreements.
A word of caution about leasing ugly cell towers.
There is a lot of information online for new cell tower landlords to navigate. If yo have been recently contacted by a cellular carrier or by a cell tower developer you want to make sure you are quick to respond to them and that you don’t waste too much time initially. The real estate site acquisition consultants are out scouting multiple properties and your property is likely one of many that they are looking at.
Get their proposal, tell them that you are interested. Don’t sign any term sheets. Have them schedule a site walk to show you where they plan on locating the tower and have them provide you with examples and site drawings.
You don’t want to sign any contracts or terms sheets until they have show commitment to you and have provided you a lease agreement and a cell tower site plan.
If they are not willing to do that at a minimum, it may be a good idea to tell them you are not interested.
Sometimes the best deal is the deal that you walk away from once or twice.
For more answers to your cell tower lease questions, call Tower Genius at 1-888-313-9750 and schedule a 30-minute strategy session with us.