Cell Tower Lease

[Sheri Nelson]

I have been approached by a cell tower company to put a cell tower on some property. The property is in an urban area. They have offered $1500 per month for a 5 year term and then 3 additional 5 year optional terms with 10% increases. I have no knowledge of cell tower leases and have no idea if this is a good rate or not. Can anyone provide any insight into this and any companies that would give good advice for this type of lease?

[William Jenkins]

I have to respectfully disagree with Joel regarding his comment that a cellular lease is not worth very much on the open market.  These leases are actually very valuable.    

My business is almost exclusively focused on developing wireless sites for the major carriers (AT&T, Verizon, Sprint, T-Mobile).  I also own and broker/consult on wireless assets (tower portfolios and ground lease assets) around the country.  

Whether or not you are getting a good offer requires quite a bit of more research.  I have done hundreds of wireless ground leases over the years and there are a lot of variables that go into determining how much you can hold out for.  Couple of quick ones off the bat..... zoning, availability of alternate landlords,  FCC, FAA, neighborhood groups, surrounding property uses, etc.  The list goes on an on.  I have done leases all the way from $350 per month all the way up to $4000.  Just like everything in real estate, it depends on how badly they need it, and what the alternatives are.      

       Questions... Is the company looking to lease your property a carrier or tower company (AT&T, Verizon, Sprint, T-Mobile, American Tower, Crown Castle, or SBA), or is it another party?  Have you negotiated with them yet (terms and lease comments) or is this their initial offer?