One of the most widely recognized inquiries we get is “What is the going rental rate for a cell tower lease?” It differs, and there are key components which drive it.
The appropriate response is very different relying upon whether this is a new lease or a renewal or extension of a current lease. In the event that it is a renewal or extension, at that point the cell tower lease rates ought to be a lot higher. That’s because if the lease is not renewed/extended, to maintain service in the area the cell company will have to replace it with a new tower. What’s more, it commonly costs at least $250,000 to discover and rent a close by area, assemble another cell tower, tear down the old one, and move all the hardware over. The expense is considerably more on the off chance that it is a tall tower or has various providers on it. So with a cell tower rent extended the land owner might be taking a look at various rates talked about below. For more about cell tower lease, click here.
Taking a look at various rates
Obviously, this accepts there are no issues in the current rent that would make this unseemly.
- First, how appealing is the site? A dense residential location or business region with many individuals with phones is an exceptionally appealing territory. A rural zone with less individuals is substantially less alluring. Also, cell towers situated close to thruways are alluring too, on the grounds that they give coverage to the traffic on the thruway.
- Second, what are the alternative locations for the cell company? In the event that this is a business region with numerous proprietors contending to get the lease from a cell antenna installation on their property, at that point there is a ton of competition and the cell tower lease rates will be less. Rural zones are comparative in light of the fact that typically they are numerous close by properties accessible for lease at a lower rate. Be that as it may, if this is a residential location or other territory where it would be hard to place in another cell tower, at that point the cell tower lease rates ought to be a lot higher.
- Third, is this a rent for a cell tower, or rather adding reception apparatuses to a current structure? The rental rate is higher for leases to add reception antennas to a current building or structure in light of the fact that the cell company doesn’t need to burn through a couple of hundred thousand dollars to construct a phone tower.
Putting this all together, a rent to add reception antennas to the top of a church, clinic or school which is the main non-private structure in a dense residential location can command a high lease. Learn more about tower renting activity at https://www.fcc.gov/wireless/bureau-divisions/competition-infrastructure-policy-division/tower-and-antenna-siting
So what are the dollars we’re referring to?
Two years back, we led the main national review of cell tower lease rates. This demonstrated about half or 66% of as of recently signed new rents had rental rates in the range from $1,500 to $2,500 every month. The numbers today will be higher. Suburban or urban territories will have higher rates. Rural territories will have lower rates. Furthermore, land owners with several cell towers command higher rates.
These are a portion of the chief factors that influence cell tower lease rates. Obviously, on the opposite side of the coin, land owners need to address the dangers that cell tower leases can make, both in terms of potentially restricting the use or development of their property and in terms of liability.