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Are you sure you’re getting the best cell tower lease rates in 2021? To illustrate how cell tower lease rates can vary in the same county or metropolitan area, we will show a sampling of cell tower lease rental rates by the same major wireless carrier on four separate cellular antenna sites leased back in 2020:
- $19,200 yearly / $1,600 monthly
- $22,000 yearly / $1,833 monthly
- $24,000 yearly / $2,000 monthly
- $36,000 yearly / $3,000 monthly
Each of these four cell tower sites are located within a 45 minute drive of each other. The specific cell tower lease value is determined by supply and demand and other site specific criteria. Just like no two snowflakes are alike, neither are any cell towers exactly alike, each have their own unique characteristics which can frequently impact price.
While many in the wireless leasing industry will claim there is a range that is only partially correct. There is an average price which is proprietary to the carriers and tower companies, but you can literally have a tower leasing for $500 or $600 monthly and have a tower 2 miles away with the same tower company or carrier renting for $4,000 per month.
This Tower Genius’ cell tower lease rate formula used to determine cell tower rent values:
High Demand For Coverage + Low Supply of Available Property Sites = Higher Cell Tower Rents For Landlords
- Determining Demand.What is the demand for wireless coverage? Are a lot of people in your neighborhood complaining to Verizon, T-Mobile, AT&T and Sprint about dropping calls, or do you have poor coverage?
- Evaluating Supply.What is the supply of existing cell sites and what are the limiting factors?
- Understanding Topography.What’s the topography like? What’s the difficulty factor involved in providing coverage to the area?
- Analyzing Zoning. What does the zoning code say in their wireless ordinance?
- Eliminating Competing Sites.What about competing existing structures? Would the building owner across the street lease to a carrier for less than you are asking, and do they have a better line of site from their rooftop?
- Weighing Other Factors.Is it a new tower being proposed or an existing cell tower lease being extended where you can jack up the rent a bit?Is the tower a single tenant site or multi carrier cell tower? Is it a direct carrier lease or is a developer the Lessee in the agreement?
- Additional Equipment, Upgrades and Expansion. If you own the tower or steel structure or rooftop, as a tower owner or as a building rooftop owner, if the Verizon, AT&T, Sprint or T-Mobile are adding equipment to your cell tower such as RRH’s or RRU’s (Remote Radio Heads / Remote Radio Units) these are not antennas, they are base station equipment that boosts signal coverage and capacity. They weigh 40 to 60 pounds each. They add a lot of weight to your towers or parapets. Additional antennas, especially if they are not like-kind can be heavier and larger and add wind load to your tower.
- Dismiss the Price Per Square Foot Hoax. Price per square foot is NOT a determining factor in determining cell tower lease values. As they say in Washington DC, it’s fake news. This is not traditional commercial real estate, even if the cell tower carriers or tower companies want you to believe lease rates are based on price per square foot, they are telling you false information. Price per square foot is not used to determine these cell tower lease rates.
Tower Genius can help you to determine the value of your proposed or existing:
Verizon Wireless cell tower lease rate
AT&T cell tower lease rate
T-Mobile cell tower lease rate
Sprint cell tower lease rate
American Tower cell tower lease rate
Crown Castle cell tower lease rate
SBA Communications cell tower lease rate
Other cell tower developer cell tower lease rate