Want to get the best cell tower lease rates in 2021? Typically, proposals for new cell towers and new rooftop cell sites are typically received by property owners and landlords in the first few months of the year. It’s important to note that not all cell tower rental prices will be apples to apples comparisons. There is a difference between a direct carrier cell site lease that is typically proposed when Verizon Wireless, T-Mobile Sprint or AT&T proposed to lease space on a rooftop, billboard, church steeple, grain silo, water tank, smokestack or utility transmission tower. The major wireless carriers are no longer in the business of owning and managing cell tower portfolios. In 2021 you can expect that 80 to 90% of cell tower ground lease proposals where the construction of a monopoly, lattice or guyed wire tower will be constructed will be made by a cell tower developer who is building a tower for their subtenant, who will be Verizon, DISH, AT&T or T-Mobile Sprint.
Have You Received A Cell Tower Proposal In 2021?
When you receive a cell tower or cell site proposal in 2021, you should ask the leasing agent if the lease agreement or lease option agreement will be directly with the carrier, or will the lease agreement be directly with a cell tower management company? This is important to know because the cell tower developers have limitations on how much they can pay tenants in annual rent, whereas the direct carrier wireless leases can be more lucrative, but not always.
So, what are average cell tower lease rates in 2021?
Cell tower lease rates for 2021 vary by location. We can tell you that the average offers made to most property owners by tower developers for a 40 to 50-year lease agreement is approximately $500 to $600 per month, with 7.5% to 10% rental increases every 5-year term. These of course are probably not the business terms that you want to accept.
Here is a sampling of very recent 2021 cell tower lease rates on newly proposed and on existing site renewals we have seen this week:
- Rural New Mexico: 30-year cell tower developer lease for $900 / month with zero rent increases for a new tower.
- Manhattan, NYC: $5,500 / month + AT&T trying to a rent reduction prior to lease expiration
- Milwaukee, WI: $1,033 / month 2-carrier Crown Castle tower
- Hartford County, CT: $65,000 / year expired 20+ year old AT&T lease
- Seattle Metro, WA: $700/month new AT&T lease
- Denver Metro, CO: $2,350 / month new Verizon lease
- Union County, NJ: $500 / month new T-Mobile ground lease
- Morgan County, Indiana: $1,125 / month new American Tower lease
In 2021 cell tower lease rates are determined on a site by site basis.
Factors that influence the value of a cell tower land lease or rooftop cell site lease are primarily the type of lease, direct carrier or tower company lease, zoning determination, topography, and the availability of qualifying potential sites. The lower fewer sites are available to choose from, the more leverage one has in a lease negotiation to obtain a higher rental price and preferable terms.
2021 Cell Tower Developer Rental Rates
In 2021 most proposed cell tower developer rental rates will range from $500 to $900 per month, direct carrier leases will range from $700 to $2,000 per month for macro cell sites.
For small cells, which are smaller 1 to 2 antenna installations, where carriers can’t utilize utility poles in public right of ways, they will usually only offer most property owners $100 to $250 per month to rent a 5G small cell, although this amount can be a bit higher depending on the location.
Tower Genius is a cell tower lease consulting and transactional coaching firm that helps landlord and property owners navigate their way through the complicated process of negotiating a cell tower lease agreement. If you have any questions about how much you should be asking for your new cell tower on a monthly basis, or your mature cell tower lease is nearing final expiration and you need to extend it or you are considering selling your rental stream payment, contact Tower Genius Partners Kevin Donohue or Steve Kazella and 30-minute schedule a cell tower lease strategy session and get your questions answered.
The wireless carriers and tower companies have wireless industry specialists helping them, shouldn’t cell tower landlords have the USA’s top cell tower consultancy in their corner?