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Cell Tower Lease Rates - How to Get the Best Rate From Cellular Tower Companies

By Edited May 2, 2014 0 0

If you have some land and have considered leasing your land for a cell tower, you’re going to want to know what the going rate for a cell tower lease. Rates obviously vary from county to county, state to state and even cell company to cell Company.

The old adage though remains true for any rate which follows a contract and that is ANYTHING IS NEGOTIABLE.  But there are some really critical factors which determine tower lease rates which can give you the advantage when in negotiations, particularly if you’ve been approached by a site acquisition company who works on behalf of the wireless company to get the best (read-cheapest) rate to have their tower on your property.

The average cell tower lease rate across the country is nearly $2,000 dollars a month. There are locations, of course, which dictate a higher or lower rate depending on various factors.

Factors Which Dictate Cell Tower Lease Rates:

1. Simple Supply and Demand:  

The economics of cell towers and lease rates is invariably dictated by simple supply and demand.  If you live in an area whereby zoning or other restrictions dictate that there aren’t many cellular towers and if you have the land and proper zoning-you will typically have an edge in negotiating a really good lease rate that is advantageous for you. This means it’s important to understand the market and regulatory conditions of cellular towers nearby. Hiring your own cell tower lease agent may give you the advantage – because these companies work for you and will do the background to work to understand where your leverage lies in getting the most money for a cell tower lease.


2. Cellular Companies:  

When it comes down to it cell tower lease rates vary from wireless company to wireless company. It’s important to know who the major cellular providers in your area are and that you may have additional leverage in approaching other cellular providers. Often times cellular companies will even share towers and house multiple antennas on one tower. Additional leverage can come in knowing that may cellular companies often lease tower space to then inter in subleases with other cellular providers after a deal has been cut with you. This is something to consider when you are entering into a contract negotiating if you are going direct or through your own lease agent.


3.  Location, Location, Location:

As with the concept of supply and demand, location is important when getting the best cellular tower lease rates. And often times the best location isn’t always in the middle of a major city. Many times the best locations in the current market conditions are rural areas as cell companies look to build out the rest of the country. And even more advantageous is the idea that typically there are less roadblocks with zoning when you are in middle America.

The above are just three factors which determine market cellular lease rates, but it’s also important to realize that ANYTHING is negotiable; you just need the background to understand all the market forces at play. The best recommendation would be to get a cellular tower lease agent who works on your behalf to do the homework and get you the highest lease possible with the very best terms over the life of the cellular tower lease.

The fact of the matter is that you can make money with cellular tower leases.




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