Negotiating a Cell Tower Lease: Getting Help
A recent survey of the FCC's antenna structure registration database showed that in 2001 there were roughly 89,000 antenna sites registered with the FCC. Today, there are over 109,000 registered sites. It is important to note that most towers under 200' are not required to be registered, so there are significantly more towers in the US than this number suggests. All of these sites are on someone's property, whether the tower company or antenna site owner owns the land underneath it or is leasing it. Over the past 5 years, the tower companies and wireless carriers have predominately chosen to lease land rather than buy it. Assuming that the increase in antenna structure registrations constitutes just 50% or all new leases, in the last five years, that yields 40,000 new cell site leases. From my experience in the industry procuring land and structure sites for cell towers and antenna sites, the vast majority of the landowners who are approached to lease land or space on their building have very little experience with this type of lease agreement. The landowners often inquire with their associates and colleagues to find out how they should negotiate. However that assumes that the landowner's colleague negotiated a good agreement in the first place, which is often questionable. So where is a landowner faced with negotiating a lease agreement to turn? First, start by asking the pertinent questions from the agent interested in leasing space for a cell tower. What is the going rate for a cell tower in this area?
What is your average lease payment?
What was the amount of the last lease agreement you signed? Can you show it to me?
Why are you looking at my property?
Is there anything special about it? While you may not get straightforward answers, you will at least get a sense of how this agent operates. From there, be prepared to do some research. Ask friends and business associates if they know of anyone with a tower on their property. Search the web for cell tower lease rates and for cell tower leases. Be aware that every piece of property is different and that each has its own value to a wireless carrier that may not be reflected by its total value. Call your local zoning or planning office to discuss what the requirements are for a tower and whether or not your site meets them. Lastly, retain the services of an attorney, consultant, or both. You are preparing to sign a 25 year agreement that will tie your land up, make sure that you understand it well. The cost of a qualified attorney or consultant is minimal compared to the money recieved over the term of the lease. If you are using an attorney, ask specifically how many wireless leases they have negotiated. If the answer is less than 5, look for someone else. A wireless lease is not like a standard commerical lease even though some of the clauses will be the same. Your attorney really needs to know the difference or he/she could end up costing you the lease. A cell tower lease can be a very lucrative proposition for you. We in the industry like to call it mailbox money- you sit back and receive a nice monthly check for doing nothing other than allowing your land to be leased, often for significantly more than any other type of use on the property. While the reward can be great, make sure that you minimize the risk by asking the questions and getting the outside help you need. Ken Schmidt is the owner of Steel in the Air, a cell tower consulting firm. Steel in the Air provides expert consultations on cell tower valuation, cell tower lease negotiations, lease renegotiations and lease buyouts. Ken has been quoted on cell towers in the NY Times and numerous other publications.
Related News
|
 |
|
|
RELATED ARTICLES
Americans Catching on to Wireless Text Messaging
Once considered a teenage fad, text messaging popularity in the United States is rising dramatically. According to The Wall Street Journal, 4.7 billion text messages were sent in the USA in December, 2004 compared to 2.1 billion in December, 2003.
Phone Fraud
Please be aware of this, as I have had these calls from the switch board ? if you receive one hang up IMMEDITELY!
The 5 Best Cell Phones on the Market
There are literally hundreds of cell phones out there made by dozens of manufacturers. It is hard to determine which are the best of the group - or at least, which is best for you. The decision is a difficult one, and we hope the information below will help you make a wise choice. The five cell phones listed below are truely the best of the best in terms of quality design, dependability, and overall user satisfaction. Although there are a lot of great cell phones out there, we are sure that these are some of the very best.
Cell Phone Cameras
A lot of myths exist regarding as to whether the cell phone cameras are any good or not. The fact that people require to admit that these cameras are also digital cameras and they exhibit the same facilities irrespective of the fact that their sizes are much smaller and their functionalities are curtailed due to this particular reason. Hence some introspection needs to be done regarding the digital cameras and cell phones in their joint venture together in the technological world!
Should Your Teenage Have A Cellular Phone?
The time has come and your teenager has asked for one but you're not sure if you should supply one or not. No were not talking about a car. This is the digital age we mean the cellular phone. Perhaps no other decision has caused so much alarm and grief (aside from a credit card) then if you should give your teenage their own cellular phone. The cellular phone companies would advocate for allowing your teenage the use of a cell phone. And certainly there is merit to that suggestion. After all teenagers can use the cell phone in times of emergency such as breaking down on the side of the road or needing a ride home. Don't forget that nearly half of today's teenagers already have a cell phone. Leaving your teenager without one could affect their cool factor with their friends and other teenagers. There probably exist many other emergency situations in which your loved one would need a cell phone.
Camera Cell Phone Verizon
Camera cell phone by Verizon ? offer with a service plan.
Spider-man 3 on Your Cellphone Anyone?
The titanic developments in new technology have radically changed the way we
watch TV and movies at home. Gone are the days when the TV set was a box in the
corner with a 20in screen and a tinny speaker. Now most of us prefer to watch
movies and sports casts on a widescreen that's at least 28in from corner to corner.
Recycling Mobile Phones
Recycle Cell Phones
International Calling Made Simpler And Cheaper
When people make international calls from their cell phones or land lines they often have to be aware of what time they are calling, and even where they are calling from. This is because international rates can skyrocket through the course of a day. Things are not much different with traditional phone companies. International phone rates are generally extremely high with major phone carriers, so many people are forced to limit the number of calls they make outside of the United States each month.
Cellular Phone Contract Tips
Choosing a cellular phone contract and choosing a cell phone for you can be very challenging. Choosing a cell phone that's right for you depends on your personal preferences and your needs.
Don?t Get Caught Out by the Mobile Phone Matrix Scams
Please read the article and leave a comment with your thoughts or experiences.
Cell Phone Security. How Vulnerable Are You?
There have been significant improvements made recently in cellular phone security. But be careful. Read on for valuable information to protect yourself.
Prepaid Cell Phone Plans ? Are They For You?
Most Americans have cell phone plans with contracts that call for a certain number of minutes per month.
Selecting a Cell Phone
More Than Just a Phone
An Introduction to Text Messaging
Why Text?
How to Find the Best Cellular Phone Service Deal
Finding the best cellular phone service deal can seem as frustrating and difficult as shopping for a new car. Nothing can be as vexing as trying to set up a new service plan that you'll be locked into for two to three years of your life.
How To Save Money On Long Distance Calling Cards And Cheap Phone Cards
In the old days (7-10 years ago) there were no long distance calling cards and cheap phone cards so it could cost you a ton of money to make long distance calls. Calling your grandparents in another state or calling home from college on the weekends was very expensive and prohibitive.
What Are All Those Cell Phone Accessories Used For?
Cell phone accessories would include antennas, batteries, cases, faceplates, holsters, holders, hands free kits and a few others. Antennas are to boost your signal and an additional battery may be a good precaution. A car charger could be a good alternative to an additional battery.
Samsung SGH-x427m Portable Digital Telephone
Switching cell phone providers allows consumers the opportunity to purchase [or get for free after rebates] a new phone periodically. I recently made the switch and was given the usual list of phones to choose from. Being the thrifty guy that I am, I chose the one that had the least cost to me once rebates were factored in. No, I did not get the plain jane freebie model, rather I snagged Samsung's SGH-x427m phone. Let's take a look at this unit and see how it stacks up.
UK Top 40 Singles: Should It Include Ringtones As Well?
I noticed two interesting stories today. The first one on the BBC stated that from Sunday the UK singles chart will include online downloads for the first time, which will have a major impact on the top 10. In the first three months of 2005, 4.5 million songs were downloaded legally in the UK - compared with 5.8 million bought over the counter, and also because downloaders tend to be mature males not teenage girls.
|
