Cell tower leases are incredibly popular but cell tower lease rates are something most landowners don’t understand. The problem is that these aren’t things most landowners regularly deal with and that throws up a problem or two. Cell tower rental agreements are useful for landowners because mobile companies want viable land to house their cell towers on. However, if the right deal is struck, a landowner can make serious money. Some rental income can reach over $100,000; not a bad amount for a piece of land. So, what do you need to know about cell tower lease rates?
The Demand for Towers
You’d think mobile and cell phone companies had enough towers to work with but the reality is that more is needed. The reason for this increase in demand is down to technology, more commonly, smart technology. Remember, people want convenience and want to be able to connect to the web wherever they are and whenever they want to. Also, households are increasing their demand for smart technology such as their heating and lighting being connected to the internet, along with TV’s and much more. Landowners can get decent cell tower lease rates because of the growing demand for towers and space.
How Cell Tower Lease Rates Increase and Decrease In Value
Cell tower lease rates are calculated through a variety of factors. Companies will look at the number of options they have available when it comes to land and tower alternatives. Also, they look at the type of lease they require, as well as how long they want the lease to last. Lastly, they may determine lease rates by the importance of the site. If the land, in their view, is a crucial piece of land, they may be willing to pay more. However, that’s something the companies keep to themselves. Rental rates are unrestricted in a sense for cell towers and that means land could be worth very little or a lot in the mind of the mobile company.
Limited Availability Will Impact Rental Rates
As with most things in life, the greater the demand and the fewer available, the more it’ll cost. It’s the same with cell towers. Cell tower lease rates may come down to the demand for an area with limited availability. Let’s say you lived in a mostly urban area and there with limited land available. However, there was a growing demand for cell towers in that area. Some companies may look towards a rooftop tower instead and that puts a great price on the potential rental income. It’s the opposite effect when you live in an area overflowing with cell towers and lots of land available. In those areas, the value might be considered to be lower since availability isn’t an issue.
Cell Towers Are Popping Up Everywhere
There’s no doubt cell phone towers are in demand and that demand is increasing by the minute. Billions use the internet every day and smart technology is on the rise so there’s a greater need for cell towers. Of course, some areas will have greater demand than others; it’ll all depend on the availability in the area. Cell tower lease rates can fluctuate dramatically but it’s essential to know more about these so you get a fair rate for your land.