Cell Site & Cell Tower Business 101
Whether it’s based on principle or
pride, it irritates us when someone else gets a better deal, or we lose out to
someone who undercuts our asking price. While we hold something’s worth as an
absolute, we have often come to this determination by a subjective, mind’s eye
calculation of what is commonly referred to as “the going rate.”
For cell site landlords, the
determination of worth goes something like this: “My uncle is making $1,650 a
month on his cell site lease and my site is in a much better location than his
so I should be getting $1,800.”
Landlords are often angered when they
are told that’s not the rate that the tenant wants to pay. They think they’re
getting gypped. They don’t understand why this tenant is not honoring the going
rate. And therein lies the problem: never confuse the “going rate” with the
“market rate.” The last house to sell on my street almost a year ago has
nothing to do with what a different buyer will pay for my house today.
The real market rate for cell site
leases is not what another tenant paid down the street. In today’s business
environment, it’s what the competing potential landlord across the street will
accept. Thanks to carriers’ escalating operating costs, the public’s appetite
for new technology and the network’s evolving engineering requirements; cell
site leasing has become a competitive marketplace. Let’s take a look at what
landlords can do to protect their income.
For years it has been said that the
going rate for a cell site lease is roughly $1,500 to $1,800 for space on a previously
existing tower or rooftop and around $1000 base for ground space to build a
tower. Obviously, this varies widely depending on a downtown Manhattan location
vs. rural farm land. But this dollar amount represents the “average rent” that
tenants have been willing to pay over the last several years in a market where
speed and coverage are a carrier priority. With subscribers now reaching market
saturation, carriers are reevaluating their expenses and what they’re willing
to pay for their cell site leases. Add to that new technology and network
evolutions that have redefined “the best site in town,” and you’ve got a new
model that will change the business of cell site leasing. This dynamic is
slowly but surely redefining what is market rate rent.
In cell site lingo, if a potential
tenant really desires a cell site and there is only one potential location for
that lease, then the rent will increase. And if that tenant’s desire holds
constant or decreases while the potential options for cell site locations
increase, then rent will decrease.
As a landlord, what can you control
when it comes to your cell site? Site selection is based on a number of factors
that tenants consider when determining sites to include in their network:
·
Constructability – Is the land or rooftop viable for developing
and maintaining a cell site?
·
Zoning/Permitting — Will the tenant be able to obtain the
necessary zoning approval and permits for site development?
·
Access – Is the location reasonably accessible for the
development and ongoing maintenance?
·
RF Coverage — Will the site provide the desired coverage?
So, if all these
factors are favorable, why is the carrier only offering you $500? Quite
frankly, it’s because they don’t know you’ve done your research. They don’t
realize that you’ve already contacted Main Stream Telecom and you’ve decided to
hire us to guide you through your lease negotiations.
Call Alex Blasscyk
today at 407.989.9809 or visit us at celltowerhelp.com and find the answers to
any questions you may have.
About Main Stream Telecom II, LLC.
Main Stream Telecom represents private landlords, commercial real estate owners, municipalities, and anyone else who receives rent or has been approached for a lease opportunity by a carrier or tower company. We are focused on providing landlords the best opportunity to maximize the value of their Cell Tower Lease Agreement.
If you receive rent for a cell tower or rooftop antenna on your property, Main Stream Telecom is interested in speaking to you. Our goal is to provide solid advice involving any and all issues associated with cell tower leases including lease negotiation, re-negotiation, landlord tenant disputes, lease buyouts and general lease administration.
We will listen to your needs and evaluate your situation in a 100% FREE consultation. Following our fully complimentary, no-obligation consultation, one of our experienced lease consultants will help you to understand the true value of your lease or potential new lease agreement.
MST doesn’t nickel and dime you with an hourly rate.
___________________________________________________________________________________
About Main Stream Telecom II, LLC.
Main Stream Telecom represents private landlords, commercial real estate owners, municipalities, and anyone else who receives rent or has been approached for a lease opportunity by a carrier or tower company. We are focused on providing landlords the best opportunity to maximize the value of their Cell Tower Lease Agreement.
If you receive rent for a cell tower or rooftop antenna on your property, Main Stream Telecom is interested in speaking to you. Our goal is to provide solid advice involving any and all issues associated with cell tower leases including lease negotiation, re-negotiation, landlord tenant disputes, lease buyouts and general lease administration.
We will listen to your needs and evaluate your situation in a 100% FREE consultation. Following our fully complimentary, no-obligation consultation, one of our experienced lease consultants will help you to understand the true value of your lease or potential new lease agreement.
MST doesn’t nickel and dime you with an hourly rate.
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