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When comparing cell tower rental rates you need to compare apples to apples.
There is a difference between rooftop carrier cell site lease rental rates, cell tower rental values of a direct carrier tower lease, and the cell tower lease that is between a property owner and a cell tower developer.
Rooftop cell site rental values with carriers such as Verizon Wireless, AT&T, Sprint and T-Mobile on building rooftops can vary greatly from $1,500 monthly on new cell sites to in excess of $7,000 monthly on mature cell sites leases.
Direct cell tower leases with Verizon, Sprint, T-Mobile and AT&T can range anywhere from $500 monthly on the low end to $4,000 monthly to start on new cell towers. The vast majority, approximately 80% of cell towers in the USA that were developed by carriers are now owned or managed by three companies, American Tower, Crown Castle and SBA Communications.
Rates For New Towers
Cell tower rental rates for new cell towers being proposed by cell tower developers will usually offer property owners $300 to $800 per month.
While you need to compare “apples to apples” when valuing a cell tower rental rate, it’s important to also get the other components of the lease right. For example, the difference in cell tower rental revenues of a direct carrier lease that a landlord signs at a rent rate of $2,000 per month at 2% yearly increases vs. a cell tower rental rate of $2,000 at 3% yearly increases is significant:
- $2,000 per month with 2% yearly rental increases = $768,711 in cell tower rental income at the end of the 25-year term.
- $2,000/ year @ 3% yearly = $900,732 in cell tower rental income at end of the 25-year term, a difference of $132,021.
The point is, you can have a great cell tower lease rate and still leave a lot of money on the table if you don’t know what you are doing, and don’t have a good understanding of the leverage that you do or do not have when facing down the wireless Goliaths. Still want to learn more? We can help and provide you with coaching, consulting and also provide you with site specific cell tower rental rates on new cell towers and existing cell tower sites.
Please call 1-888-313-9750 and ask for Steve or Kevin.