Factors That Affect Cell Tower Lease Rates

Factors That Affect Cell Tower Lease Rates

Cellular technology requires the installation of cell sites in a strategic pattern to provide service for the target population. Service providers thus need to buy or lease properties all over their areas of operation so that they can install their towers. These have limited effective range so several of them are needed to cover an area. The nearer you are to a tower, the stronger the signal that you will get to enjoy on your phone. It means faster surfing and less dropped calls. Leasing properties to these companies can be a lucrative source of income. Below are the things that determine the cell tower lease rates:

Tower Lease Type

The towers are usually erected in two ways: from the ground up on actual vacant land and on tall existing structures such as buildings. The former is the typical case in rural areas while the latter is more practical in urban areas. Carriers will negotiate a contract with the property owners so that they can place their equipment at these strategic sites. In order to erect a cell tower, they will usually require about 300 square feet or more. They might ask to expand this later on or upgrade their equipment which calls for another round of negotiations.

Cell Site Location

The rent offered will depend on the availability of suitable sites. For example, there may be low offers in a rural area with a flat feature for miles and miles. It may be higher if you are on a lone hilltop as this provides advantages to the carrier and you have no comparable competition around. In highly populated cities, land prices are too expensive so carriers will usually look for tall buildings with suitable rooftops instead. If there are few such locations, then the rents will be higher. Cities like New York and San Francisco have some of the highest cell tower lease rates.

Cell Technology

Carriers are always looking for ways to reduce their operational costs. This includes the leases that they have to pay for their towers. The advent of new technologies help them achieve this. Cells are getting smaller and smaller while providing comparable reach to the older and larger ones. Even those with limited range can still be excellent options are they are easier and cheaper to install despite more units being necessary.

If you have a suitable property, then you can reach out to carriers to negotiate terms for lease.

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