Q: Who are the carriers that could most likely present me with a cell tower lease to negotiate on my property?
HAS: Typically, the wireless carrier will not directly present you with a cell tower lease. One of your real estate or wireless site acquisition managers will usually contact you first to assess your level of interest. You want to make sure before you enter into a cell tower lease with any of the wireless carriers they do business with (ATT, Sprint-Nextel, US Cellular, Metro PCS, ClearWire, Verizon Wireless, Alltel, T-Mobile) or sign a Contract with any of the large tower development or rooftop management companies (AAT, Crown, American Tower, SBA) to do your due diligence, but don’t expect too much.
Also, if you are lucky enough to be contacted by one of these firms, make sure that neither you nor your attorney are negotiating a cell tower lease. Often lawyers start marking a lease just to get billable hours. If the movers have to spend a lot of time going back and forth, they will move to another site that is willing to do business, and then you end up looking at the site instead of charging you rent.
Q: What should I look for in my cell tower lease?
HAS: A properly executed cell tower lease should protect your rights to ground space, rights to rooftop space, and address subletting/subleasing issues that many cell site owners often overlook. It will also include tax language to protect you from assessments. Additionally, it is critical to properly develop the site (tower height and available ground space) to allow for expansion and siting, which will increase cell tower revenue. All cell tower lease exhibit drawings must be completed by a state licensed architectural engineering firm. I could write a list of a dozen things that seasoned real estate attorneys regularly miss in cell phone tower leases, but where’s the fun in that?
Q: I don’t know anything about zoning or building project management, should I even bother building a cell site on the roof of my building?
HAS: Shippers will not select your site if it is not feasible for development from a number of aspects, primarily the zoning and land use perspective. Only enter into a cell tower lease that places the burden and expense of obtaining permits and approvals on the operator or tower company, not on you, the Owner/Lessor.
Q: What happens if cell phone towers become outdated? What happens then?
HAS: The operators are heavily invested in the development of the wireless network. Over 70% of the US population uses cell phones. So if you hear rumors about a balloon or a blimp or a satellite being used for cellular technology, don’t be fooled, cell phone towers are here to stay. We didn’t stop using Sony Walkmans either, they just call them iPods now, but people will always want personal music players, and the same goes for personal communication devices.
Q: How long will my cell tower lease be valid?
HAS: When you sign a cell tower lease, the lease term will initially be 5 years with two renewal terms in most cases, and an additional ten year term after that. Since no one has a 35-year cell tower lease as of yet, we can’t say how long they can be extended, but let’s assume your cell site leases will be extended for as long as you own the site and people need to talk to each other. on wireless devices.
Q: How much can you get for your cell tower lease?
HAS: Isn’t this always the big question? And our answer is that it depends on how much they need your site and where it is located. The closer to the heart of a major metropolitan area, the greater the demand for wireless coverage and capacity, and the more you can get. Rooftop sites vary from ground leases. For example, in Columbus, Ohio, you can get $1,100 per month each of the three movers on your rooftop for a total of $3,300 per month. Whereas if you had a cell phone tower on your property in the same city, you could get $1200 for the first carrier to build the tower, and additional carriers to pay rent to the first carrier to co-locate their pole, and then each will pay you. you $900 for floor space rights, or a total of $3,000 per month.
Q: Shouldn’t my lawyer be able to guide us?
HAS: Cell tower leasing is a very complex and specialized contract that is heavily weighted in favor of the cellular operator. But think about it, it has to be like this. Building a cell tower on your property is like Donald Trump saying, “I’d like a small piece of your land and I’m going to build a structure on your property that costs hundreds of thousands of dollars.” MY expense, and it can potentially bring you $1-2 million in rental income over a 25-30 year period if we can develop it properly. But I will only do this if the contract protects my investment. And if I don’t like it, no hard feelings, the boy next door has 2,000 square feet of space and could use his retirement money.”
Now, nothing against Mr. Trump, because he’s a success icon, but if you were to sign a deal with him, would you use an average lawyer or would you get a top-notch lawyer? And that’s where we run into a talent shortage in the marketplace. Those who can afford it hire a cell tower leasing lawyer, those who can’t cross their fingers and hope they get a good deal.
That’s why developing and leasing cell towers on your own is challenging, and why homeowners who can find a partner to work with are well served in both the short and long term.
Q: How can I get a cell tower lease signed for a tower on my property or antennas placed on our roof?
HAS: Having an uncle who works in the real estate department at one of the shipping companies is your best bet. If that’s not an option, submitting your site directly to the operators gives you about a 1 in 1,000 to 1 in 10,000 chance for site selection.
This is our inside secret to getting a mobile operator interested in your site, revealed for the first time anywhere. First, pray to the Radio Frequency gods. Then print a dozen 18 x 24-inch “bandit signs” on your property that say in bold, “I want a cell tower on my property.” Your neighbors will probably steal them, but keep them posted on your property in a visible area. If a site acquisition consultant drives down that road, he’s in for a call.
Last Question… (Extra Credit)
Q: What is the difference between signing a cell tower lease at $2,000 per month with 2% annual increases compared to $2,000 per month? the same monthly rent amount with anticipated 3% increases over a 25-year cell tower lease term?
HAS: The difference is $132,000 over 25 years. WOW!! Are you happy or are you kicking yourself?
