The Points to Consider on Cell Tower Lease
A lot of people are always wondering how much it cost for a cell tower lease. What seems to be the problem here is, there’s no specific answer since there are different buyers who buy at different times, expect that the asking price and leases will be different too. Therefore, if you would like to get a fair price then you should break it down.
Location of rooftop or tower – when talking about the location of cell tower, this is going to be a bit complex to find the right assessment of its value. As a matter of fact, there are some old towers that are of less importance to cell phone carriers due to the reason that they are filled in coverage by buying another site. They’ve made a deal in locating their equipment on the site of their competitor or even bought the entire carrier. Now and the future will be a fundamental element that should be taken into consideration to get the right price whether the site is seen a necessary part of coverage.
Another element that is used in computing a fair value is the present rent paid by the carrier or competitor.
Remaining term on the lease – as a matter of fact, cell tower lease is worth more if there’s lesser time that is set on the lease. Because most of the leases are subpar with regards to monthly rent, co-location and escalators, buyers are well aware that they’ll be more capable of renegotiating the lease. Normally, they are capable of doubling the rental price, add participation in the subleases and also, improve escalators.
Co-location rent, escalators and rent – keep in mind that there is an open negotiation for the rentals, escalation clauses and co-location rent. You just have to understand the significance of cell site to carrier or carriers who occupy the rooftop or tower. There are some sites that are actually more important than others and cell lease buyers will be taking this one into mind when they are bidding on a lease.
Know your cell tower lease buyers – expect that you will be transacting with companies in the process, companies that are known for generating large profits. They have the experts who are trained and skilled in getting a lesser lease. In regards to this matter, you may have to work with a cell tower lease specialist or attorney who can help you navigate through this and ensure that you are talking to the right people and getting a fair lease rate.
Use a cell tower consultant – cell tower consultant or advisor or perhaps, a cell tower broker is going to help you make money. For this, they are certain to play an important part on your deal.