Factors Determining Cell Tower Lease Rates

One factor that determines the growth of any economy is technology. Over the past years, countries have embraced the new digital technologies and integrated to their day to day activities. One form of these technological innovations is the advancement of the communication mode. Communication has been enhanced and made quicker and cheaper. This has been made real through the use of electronic communication equipment. They are usually placed in cell towers typically to support the antennae. This makes the cell tower sites more in demand, making people lease them out. You need to know a few things about how cell tower lease rates are determined.

Cell Tower Lease

Accessibility to the area

Just like any other development you may want to carry out in an area, accessibility is always a priority. Same case with the tower companies. They require areas that are easily accessible. Due to construction, they require to transport their materials and thus they need a good road network. So, the easier the accessibility the higher the lease rate. This may help you in determining the cell tower lease buyout offers.

Availability of Infrastructures 

These are the fundamental technical structures and facilities serving an area. They are usually necessary for the economy to function. They include the water supply and sewers, financial systems, health care systems and other institutions that would facilitate the establishment of the cell towers. Check Cell Tower Lease Experts for more details.

The area topography

Arrangement of the natural and artificial physical features of an area. It is a great consideration by the cell tower companies. Ground elevations tend to be the most determining factors when determining the lease rates. Higher lands tend to attract a high rate. This is because the tower company won’t incur a lot of cost building a high tower, as compared to a tower built on a low land. This may help you to know whether or not to sell your cell tower lease.

Average lease rate in the region

The amount of the lease will largely be determined by the average price of land in that area. The wireless carrier will be willing to pay in relation to the rates in that surrounding areas. If the land in the area is expensive then the lease rates will also be on the higher side. Same case if the land in the area is at low price. The wireless carrier will pay less, bringing down the lease rate.

The level of desirability

It is closely linked to the law of supply and demand. If your property meets the cell tower companies’ needs and there are no comparable properties nearby, then it is likely to attract a high lease rate, as compared to an area with similar facilities nearby. In such a case the company would have options, therefore, making it more challenging to secure a high rate. Therefore the question should i sell my cell tower lease is easily answered.

Lease period

The duration to which you will negotiate with the cell tower company will highly affect the rates. Long lease period will attract the company and they will pay for a high lease rate as compared to short term lease.   Lease extensions and renewal will also attract a high rate. You need to negotiate a reasonable time frame in order to increase cell tower rent rates.

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