Negotiating cell phone tower leases is difficult when you and your lawyer don’t speak legal telecommunications jargon. How can you be sure that the rental rate for the cell tower you are negotiating is fair market value? While your lawyer may have helped you with real estate transactions, handled litigation, or other complex transactions in the past, and may even be a good friend, it is likely that in 99% of all turn transactions cell phone towers, they don’t care too much about renting cell phone towers, or how to deal with carriers.
Imagine the following cell tower rental scenario. Imagine the mobile phone operators and their lawyers are a pack of hungry lions. The owners and your agent are a young animal separated from the herd. Without proper protection, you don’t stand a chance. Wireless operators and their lawyers will put their terms on you, especially if you or your lawyer doesn’t speak telecommunications jargon. By the time you realize what is going on, it is too late; either you accepted the terms of your cell phone tower lease that you don’t like, your lawyer negotiated you to cancel the deal, or they moved to another location. Either way, you’re dead.
Here’s the scoop on cell tower rental rates that cell phone companies don’t want owners to know about. Wireless operators pay their real estate rental contractors high commissions for running cell phone tower leases at certain prices. The better the conditions agreed in favor of the carrier, the higher the premium paid to the rental agent. Now, there is nothing wrong with that as we live in a free market society, but if you own a property and a carrier wants to rent you space for a tower or for a cell site on the roof, you want to make sure that you are maximizing your income.
Misconceptions about cell site rental:
Often times, landlords and landlords turn to a cell site expert to provide them with comparative rental rates paid by nearby cell carriers to determine what they should be getting as fair market value.
Likewise, mobile carriers routinely postpone lease negotiations, saying that no landlord gets what you ask for.
Here is 411. Your neighboring landlords with existing cell phone tower leases could all have negotiated horrible rates and terms, and cell carriers can literally get ripped off and put owners down and install cell phone towers everywhere. where they can find a landlord willing to take a dirt cheap rental rate and does not reflect fair market value.
All the research and fair market value data on rental rates is completely useless if you don’t know how the cell tower lease negotiation game plays out.
Think about it …
At a lease rate of $ 2,000 per month or $ 24,000 per year, if you agree to annual increases of 2% instead of 3%, you will receive $ 132,000 LESS over the 25-year term of the lease. cell phone tower. Now let’s say you have a monopole phone tower with 4 or 5 operators and all of your leases are at 2% instead of 3%. We are now talking about over half a million dollars in lost revenue over the term of the leases. OUCH!!
Now here is the minor detail that will make you laugh or cry about cellular antenna rental rates. The cell site acquisition subcontractor we told you about a few paragraphs ago could make a bonus of $ 500 to $ 2,500 to save the carrier the $ 132,000 they would pay you if you accepted them. best conditions.
Do you negotiate rental rates for cell phone towers on a par with cell phone operators?