Cell tower lease California Valley

3 Replies

I was proposed by AT&T to put a cell tower on my property in California Valley, CA. Its a very rural area and barely any cell phone service out there. It would be placed in the corner away from the house on the 2.5 acre lot. They asked 500/mo with a 7% annual increase. I came back and asked them for 800 a month and they accepted no questions asked. Now Im thinking the lot is worth way more and I negotiated way too low? Is it too late to ask them for more? How do I find out if this is a hot spot or what its worth without having to pay multiple real estate attorneys? 

Congratulations to you @Kayla C. ! It's worth a try asking them for more if you haven't signed any contracts yet at this point. What you can also do, by due diligence, is drive around where other cell towers are located and asked for the owner of the property, to find out how much is their contract with the mobile company. This will give you an idea of the $ range.

On the other hand, it's an unused land that you're getting paid monthly, so it's an income stream. If they don't agree increasing the monthly lease, then hit them with the % annual increase. It's all about contracts. Win-win!

On top of these, AT &T made their study and survey in the area and picked your spot. Meaning, it will not be just AT&T knocking on your door, Verizon might follow.

Good luck!

Hello Kayla,

The rate for a ground lease depends greatly on how dense an area you are in and the availability of alternative locations. $800-$1,200 per month would be a standard range based on my experience for a rural-moderately developed area. 7% annual escalation on the other hand is more than twice what I would have expected, are you sure it isn't per Term? 

it's per term, thanks for the info. 

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