Copyright Andrew Kellerman 2011 - 2012
Own a cell site? Do you know what it is worth? We set record prices.
When negotiating your cell site tower or rooftop lease there are many things
that you need to know. Obviously the lease rate is important, however there are
other provisions that can affect your overall 'life of the lease' totals as much or
Co-location rents or fees are very important as they allow you to collect a
portion of any sub-letting the tenant, the cell phone or data carrier, collects
from additional carriers the tenant adds to the cell site.
Escalation of your rent each year or 5 years can also make a big difference in
the 'life of the lease' total amount collected. Normal escalations are 3% yearly
and 15% each 5 years. The 3% yearly escalation will actually give you a little
more due to the compounding.
Read more at Negotiating a Lease.
Verizon Wireless has built more cell towers than any other cellular carrier and is
more an site owner than a tenant of another carrier. The lease rate they will
offer you will depend on how much they want the site and whether they have
alternate sites available that will meet their needs. You could expect an offer of
anywhere between $1,700 a month to $2,000 a month*. I highly recommend
seeking an cell lease expert.
AT&T Wireless is a close 2nd behind Verizon when it comes to tower
ownership, so they too are more often an tower or rooftop owner rather than a
tenant. There are a couple of hiccups possible. The first is that Cingular, now
part of AT&T, still has sites that due to redundanc, will be decommissioned.
Second hiccup is that if AT&T is successful for its T-Mobile bid, it will again
cause some additional redundancy and further lease terminations. Rates
should equal lease rates of Verizon, somewhere around $1,700 to $2,000*.
Sprint Nextel still has thousands of redundant sites. Rents to look for should be
on the weaker side of $1,500 to $1,700* as a lease rate, depending on whether
it is a tower or rooftop. I highly recommend seeking a cell lease expert.
T-Mobile could eventually become part of AT&T, but until that happens, the
lease rates will be on the softer side or the normal $1,500 to $1,700* lease
rate. I believe that they will become very aggressive if and when the acquisition
by AT&T is completed. 'T-Mo' is more of a tenant when it comes to towers and
more of an owner when it comes to rooftops. I highly recommend seeking a cell
CricketWireless.com established in 1999 and is a subsidiary of Leap wireless.
As a rooftop site owner and more of a tower sub-lessor lease rates are more
towards the $1,200 to $1,400* range. I highly recommend seeking a cell lease
Leap Wireless was founded in 1998 and currently has 7 million users across 34
states as of May 2011. Leap has been pretty aggressive since being the
purchaser of a spectrum of frequencies that could give it a tremendous boost.
Lease rates towards the high end of $1,400 to $1,650* a month, again
depending on rooftop or tower site. I highly recommend seeking a cell lease
MetroPCS, formerely know as General Wireless, Inc., is the 5th largest cell
phone carrier in the Us with almost 9 million users. The company is
headquartered in Richardson, Texas. Lease rates should be middle to higher
end of $1,500 to $1,750*. I highly recommend seeking a cell lease expert.
* Cell tower lease rates depend on many factors and can fluctuate a great deal.
Please seek an expert on this area as each cell site has pluses and minuses as
due each cell or data carrier.
Must reads - "Cell Tower Terminations",
"Cell Tower Lease Co-Location Rents"
"ROFR" - Right of First Refusal (Cell Tower Leases)
Verizon Cell Tower Lease Values
Value of a T-Mobile Cell Tower Lease
Cricket Tower Lease Rates
MetroPCS Tower Lease Rates
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