Factors That Determine Cell Tower Land Lease Rates

Cell Tower Lease

Factors That Determine Cell Tower Land Lease Rates

Have you been approached by a telecommunications company asking you to lease them your land to enable them construct a cell tower? If so, then you are probably wondering how much you should charge them for the lease. Truth be told, there is no easy way to calculate the rate by yourself. This is because the rate is calculated based on a number of factors.

How Cell Tower Lease Rates are Calculated, as mentioned above, lease rates are calculated based on several factors that’s why these rates may vary in thousands of dollars from property owner to property owner. The wisest to do if you want to determine the proper lease rate is to consult an industry expert for assistance in determining the value of your property as a cell tower site. He or she will properly advise you on how much the cell services provided should pay for leasing your property.

With that said, here are some of the common factors that determine how much a telecoms company will be willing to pay for leasing your land.

Location

Similar to other land deals, location is a major factor affecting its value. The lease rates will greatly differ between property owners in densely populated metropolitan areas and sparsely populated rural areas. Those in major metropolitan areas will receive considerably higher rates because there are many cellphone users and fewer similar property owners with whom they can negotiate within the location. The rates in sparsely populated areas will receive lower rates since the population is low and there are many similar property owners with whom they can negotiate.

Elevation

Cell towers work best when constructed at high elevations. In fact, this is the main reason why service providers place them on leased rooftops of tall buildings in urban areas. So if your property is located in an area with high elevation, expect to receive high lease rates from the mobile carrier.

Distance to Adjacent Towers

Telecoms companies prefer to build their towers in areas where other towers are not located nearby, at least one mile away. If this is not the case with your property and there are other Cell Tower Lease Rates within a one mile radius, then the chances a carrier will approach you to build its tower on your property is slim.

Other factors that determine how much a telecommunications company will offer you as lease rate for your property are local population size or traffic counts, zoning ordinances within your locality, and special considerations within the lease agreement, such as whether they will sublease the property or not.

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