Have you ever walked down a neighborhood or town and wondered how all these cell towers ended up on properties? Do cellular companies buy out these properties to place their cell towers? Or is the government securing this land for the companies?
If you don’t know already, be prepared to be surprised – cell towers are almost always built on land or cell sites are deployed on buildings and are leased out by property owners, which means that if you have a building, land or property, to be able to get a cell tower. But getting a cell tower on your site is not easy. In the USA there are about 350,000 cell sites and about 330,000,000 people. About 1 in 1,000 people are cell tower landlords or cell site landlords. Who knew?!
And if you are still reading this and wondering how much a property owner can make through a cell tower lease, keep on reading and you’ll be surprised again.
What is a Cell Tower Land Lease?
- Just about every cell tower or rooftop cell site in the USA has a ground lease or rooftop lease between a wireless carrier and a property owner or building owner or between a tower management company or tower developer and a property owner. Cell tower rents are paid monthly or annually.
The cell tower rent rates Verizon Wireless, AT&T, DISH, Sprint, T-Mobile, American Tower, SBA, Crown Castle or Vertical Bridge pays can vary significantly and their worth is based on many factors such as location and cellular needs in the area. Cell tower lease valuations vary widely based on a wide variety of factors that Tower Genius has evaluated thousands of times. The value of each cell site lease is determined on a site by site basis.
- The location of the land is very important for cell tower companies and sometimes American Tower, SBA Communication and Crown Castle are even willing to pay more if they can add more than one carrier. Of course they will never tell you that and it is one of the reasons you need a cell tower leasing expert like Tower Genius on your side. Also Verizon, AT&T or T-Mobile might place a cell tower on top of electrical transmission or utility poles, low level rooftops and on church steeples, billboards and signs. Determining the proper value of these lease agreements is not something your attorney, real estate agent or the carrier’s site acquisition representative will be able to assist you with.
The bottom line is that the wireless leasing business can be very lucrative for a landowner or it can be a huge headache depending on the kind of lease that you end up signing. So make sure you get sound advice. And who you get that advice from is also important.
What’s the Demand of Cell Tower Lease Rates For 2020 and Beyond?
- Americans are addicted to their cellular communication devices. Demand is high and will continue to rise because more and more users are in need of faster data and increased capacity and cellular companies are struggling to keep up with demand. So they are always on the lookout for properties to install more equipment. Over one million addition 5G small cell sites will need to be added in addition to the 5G upgrades that will be completed on the existing 350,000 cell sites that are in operation currently in the United States.
And with 5G technology becoming increasingly in-demand in 2020 and 2021, you can well imagine how good things are looking right now for this industry. If you have a property that meets all the criteria of a cell tower lease agreement, you shouldn’t think twice about leasing it out. Private landlords can expect to be paid between $200 and $500 per month if Verizon, AT&T or Sprint selects their rooftop to place a 5G small cell site. Landlords can expect to receive 100% to 200% additional revenue if their site is selected for a macro cell site or cell tower in 2020 depending on their location if the lease is structured properly.
Looking to Lease for a Cell Tower?
- If you have a property and you want to lease it out for a cell tower, you will have to know a lot about what goes into an agreement and how cell tower lease rates are calculated. Tower Genius the USA’s premier cell tower lease consulting company that can help you with this.
The Partners of Tower Genius have 50+ years of cell tower leasing and development experience and we have helped hundreds of property owners across America who have been contacted to have a tower placed on their land to secure awesomedeals with cell tower companies like Crown Castle, American Tower and SBA Communications and wireless carriers such as AT&T, Sprint, T-Mobile, DISH and Verizon Wireless. The carriers and tower companies are loaded for bear when they contact your with a proposal, are you? Talk to the industry leaders for landlords and property owners, call Tower Genius today at 888-313-9750.