Does anyone own a building with a cell phone tower on the roof?

Question

Steven Quinn · Answer

No.

No, I work on the buyer side.

Register your property with the major carriers and hope that your location fits a network need and active build-out plan.

Omar Khan · Answer

@Evan Torrens You should definitely have @Joel Owens advise you. He is a wealth of knowledge on all things commercial real estate and always provides solid insights.

Joel Garfinkel · Answer

Hi Evan, I own a few properties like this in CT,NY,NJ, PA and MD. We have sold the rights, held onto them, sold properties without the rights as well as consulted for property owners because the towers aren't always paying what they should.

Any questions I would be happy to help.

Joel

Any questions I would be happy to help.

Joel

Michael Pedenko · Answer

Evan, let me know - I buy buildings with towers on the roof in the Tri-state area

Zach Williams · Answer

Does anyone on here know how to effectively get in touch with cell phone carriers? I have a customer who wants to build a tower on their land and lease the tower space. He has been approached by many tower companies (ground lease guys not manufacturers) offering 600-800 a month. We have everything put together, but the missing piece is how to solidify a contract with the cell carriers. I will produce and build the tower once a contract is produced.

Nick Foster · Answer

The above valuation is incorrect. Cell tower lease contracts typically have a 30 day termination clause. So it doesn’t matter if there are 30 years in options or 100 years in options. The only “guaranteed” rent is 30 days, since they can terminate at anytime.

This is why lending institutions typically do not provide any value to cell tower leases, when buyers are acquiring property with a cell tower lease.

My background, I’ve sold over 90 cell tower lease contracts for property owners and my primary business is a cell tower lease consultant for property owners.

Joel Owens · Answer

Cell phone lease companies tend to pay very little for the overall value of the actual contract without the options considered.

So if primary lease was for 20 years at 10,000 a year then total value is 200,000 before options.

They might pay max 50% of the overall value and usually less. They are hedging bets for the future return of the contract.

I have had clients off on retail centers with cell tower attached or on top of roof. It can cause issues with who maintains it and also with insurance claims if a leak or damage occurs. Better is to usually have a cell tower independent and not connected to another structure.

We mostly stay away from those types of centers now. Buyer does not want the liability of a cell tower with very little benefit and upside.

Karl B. · Answer

My parents sold their rights. The tower wasn't on the roof though - it was located near the warehouse. If I remember correctly the tower people contacted my dad about putting it there - they are very strategic and build based on improving cell phone signal quality.

Evan Torrens · Answer

Michael and Joel.

I sent you a direct message. Please give me a call at your earliest convenience.

Evan Torrens · Answer

Going to look into registering with the carriers. Thanks Steven.

Does anyone own a building with a cell phone tower on the roof?

Does anyone own a building with a cell phone tower on the roof?

Most Popular Reply

12 Replies