When dealing with Cell Tower Lease negotiations, one of the most frequently asked questions is “What are the best rates that I can get from a Cell Tower Lease?” This will then be followed by a whole lot of questions like how much your home is really worth.
There are plenty of factors that can affect the price of your cell tower lease. Some of these include Legal, Technological, Engineering, Marketing by Wireless Carrier, and many other aspects may be considered to increase or decrease the pricing of your real estate. In no particular order, here are some factors that may make a positive or negative impact on cell tower lease rates.
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1. The Local Community
The development of the cell tower site can be met with some opposition amongst your local community. Many feel that having a cell tower affects the aesthetics of not only your building but also the surrounding environment. Some think that cell towers are just not “nice to look at.”
You will probably encounter this problem in more scenic areas or places with pretty views. Lakeside towns or the beachside provides its residents with a view that would obviously be ruined with a cell tower. Regardless, though, of where your area would be, there will be mixed opinions on this.
On the other hand, one landlord can already have an existing property that is in a strategic area which is beneficial for both carriers and landlords. The landlord can charge more as it is considered a prime location. If you’re as fortunate as this landlord, you can command higher cell tower lease rates too, and negotiations will most likely be in your favor. Although you may have the upper hand in that scenario, it’s best to have a cell tower consultants to advise you. You may miss out another avenue of revenue during negotiations, so it’s best not do this alone. With the expertise of one helping you negotiate a better cell tower lease rate, you will also be able to discover another avenue of revenue to boot.
That means more money for you!
2. Is the Landlord looking too “Desperate”?
When you’re negotiating for a cell tower lease, it is best to look composed and professional. This will ensure that the mobile carrier that you are talking to would not look down on your proposal. One common mistake is that a prospective landlord often looks desperate or over-eager. This shows that you are under experienced with cell tower negotiations which allow for easier exploitation. The last thing you want to do is for the other party to look down on you.
Strive to look cool, calm, and collected so you do not miss out on any other opportunity that might increase the value of your contracts. It goes without saying that the other party would want to lowball your real estate and if you are not composed when you negotiate, you will likely lose out. A site acquisition specialty will not only assess the site but also your readiness when it comes to negotiations.
3. Competition
The competition surrounding your cell tower lease rates will obviously have an effect on the pricing of your estate. It is a given that too little competition will create a positive effect as you will have a bit of a monopoly on the cell tower contract. This means that you have a bit of a say on how much your estate should cost. As with monopolies, you can dictate the price. On the other hand, if there is too much competition, the selling point would be to give the mobile carriers the lowest price to guarantee that they sign with you. This can be problematic especially if you are hoping for a high payout.
In the end, it all relies on the basic economic concept of supply and demand. It is imperative as a landlord to be aware of how much competition he/she is up against, for example, if there are more landlords than carriers in that one area, as a consequence the rate is significantly lower than the average cell tower lease rates in other areas that are not as densely occupied. As a landlord, it is also important to understand what your competition is like and what makes them more appealing to carriers.
- One problem that carriers find appealing and are exploiting is how easy it is to negotiate with new landlords. Some are way too overeager and just give in to the demands of the mobile carrier. This could be problematic for you as they will try to lower the rates that they offer to you citing that many have already agreed to an even lower rate which can undermine your efforts.
Areas that are known for their natural scenery would not be as inclined to have a cell tower installed in the local area. This often occurs in more rural areas like the countryside, lakeside, and seaside areas where more up-market property locations can be found.
Cost of construction will also play a factor because carriers will want to save as much money as they can while maximising on any potential gains. Logistics is something that should also be taken into consideration such as ease of access to any maintenance staff.
The above is just the tip of the iceberg; there are many other factors that are relevant to the process of a carriers selection. It’s vital to understand the value of your property as a landlord as it may prove to be helpful of being aware of the competitive advantages property yields. This understanding will be useful during negotiations.
