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.

---

Review of Bluetooth Wireless Headsets

Bluetooth headsets make up one of the fastest wireless markets... Read More

Camera Cell Phones - Say It With Pictures!

Camera cell phones are sweeping the nation! In fact, long... Read More

Are Cellular Phones Just a Fashion Accessory?

Cellular phones are used by millions of people in the... Read More

Prepaid Wireless: Is It Right For You?

Just about every leading mobile phone provider now offers some... Read More

Cell Phones Safety - Are They a Risk ?

Cell phones are everywhere and I believe they are here... Read More

Defeating Crime With Digital Camera Cell Phones

The newest techno gadget, which is reshaping the way teenagers... Read More

Cell Phone - Why Should I Upgrade

We hear from friends or just general chat by people... Read More

New Tips For Shopping Cellular Services

The best money saving practice for buying new cellular phones... Read More

Choosing a Phone and Voice Mail System

Phone and voice mail systems can be pretty costly, even... Read More

Cell Phone - Helping You Choose

When the first cell phone arrived onto the market it... Read More

Mobile Content: An Expression of Individuality

Cell phones were created with the purpose of facilitating communication... Read More

Prepaid Calling Cards and Terrorism: Where Did All The ?Chatter? Go?

Does that necessarily mean that there are no terrorist communications... Read More

We Have Compiled a List of Wireless Cell Phones General Cautions and Warnings

For the most part, wireless cell phones are safe. And... Read More

Why Your Business Should Consider SMS

As an organisation, the use of SMS might seem too... Read More

Protect Yourself From Cell Phone Radiation

With cell phones quickly becoming an important part of our... Read More

Cell Phones Endanger Children

If your child uses a cell phone, take note. A... Read More

What Are All Those Cell Phone Accessories Used For?

Cell phone accessories would include antennas, batteries, cases, faceplates, holsters,... Read More

Why Mobile SMS/Text Messaging?

What is Mobile SMS/ Test Messaging?Mobile text Messaging, or Short... Read More

Cellular Phones ? Things to Consider When Buying a Phone

Staying connected with a cell phone has become a way... Read More

Free Cellular Phone

Free cellular phone offers.You can definitely find a free cellular... Read More

Cell Phone Reviews - Reaping the Benefits Of Online Wireless Reviews

There are a lot of benefits that are offered by... Read More

Here Are Some Tips For Safe and Appropriate Use of Your Mobile Phones

Bought the latest in mobile phones? Can't wait to show... Read More

Free Cell Phones All Around - Cashing in on Consumerism

There's no greater way to win the hearts of consumers... Read More

Tips for Cell Phone Batteries and Usage

There are just a few tips that will help you... Read More

Seven Costly Mistakes Businesses Make When Buying Telephone Equipment

Companies have spent BIG dollars for the telephone equipment that... Read More

Family Cell Phone Plans - Comparison Shopping To Help You Choose The Best Plan

With the myriad of cell phone plans that are available... Read More

Phone Fraud

Please be aware of this, as I have had these... Read More

Smartphones - Beyond Voice to Information and Entertainment

Investments in shares of wireless technology companies and wireless service... Read More

Motorola RAZR V3 Camera Phone

Months before my current cell phone plan expires, I like... Read More

Finding Long Distance

When a person moves, they need to hook up utilities.... Read More

Camera Cell Phone

Camera cell phone ? benefits.Camera cell phone is a great... Read More

What is SMS?

What is SMS?SMS, also known as short messaging service, is... Read More

Camera Cell Phone Video

Camera cell phone video - description.Camera cell phone video is... Read More