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. Simply put, every lease has to be taken each layer apart.
Location of rooftop or tower – the location of the cell tower is quite intricate in evaluation of the lease’s 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 have come to a deal in getting their equipment on site of their competitor or perhaps, bought the entire carrier. Whether your site is deemed to be a necessary part of coverage, today and the future is a basic factor to be taken into mind when it comes to getting the right price.
The prevailing rent paid by the competitor or the carrier is another factor used in calculating its value.
Remaining term on the lease – a lot of buyers aren’t going to let you know that the lesser time you have on the cell tower lease, the more it is worth. Since most leases are subpar in relation to monthly rent, escalators as well as co-location, buyers are aware of the fact that they are in the better position of negotiating for the lease. Most of the time, they could double up the price of rental, improve escalators and add participation in subleases.
Co-location rent, escalators and rent – escalation clauses, rentals and the co-location rents are negotiable. On the other hand, it is just a matter of how much you understand on how important the cell site to the carrier or carriers who is occupying the tower/rooftop. Actually, there are some sites that are more important compared to others and the cell lease buyers take this thing into account when 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 sales people who are paid more if they could get the lease for less. When it comes to this, you might need to work with a cell tower lease expert or a lawyer who could help you in navigating through this and guarantees that you’re with the right people and get fair lease rate.
Use a cell tower consultant – you can actually make money by working with cell tower consultant, broker or advisor. For this, they are certain to play an important part on your deal.
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