A cell site lease value can range drastically based on the location and density of your property. A cell tower antenna is much like the wavelength that you use in your tv remote. The more items there are that block the antenna, the less that tower may be worth; as the carrier would need to add another location to increase the signal strength.
When a carrier comes to you and offers to lease your property for a tower, it is important to understand the layout of your neighborhood, existing tower locations and be able to identify the potential neighboring sites they could move to. If you determine your site is in a “hot spot”, you may be shortchanging yourself by not negotiating rents higher than what would be possible.
The Average Cell Site Lease Rate
An industry average for a cell site lease can range from $800-$3,500/m depending on several factors. This would be per carrier, so if you have a location with multiple carriers and a large bandwidth, you could be in for a life-changing equity play.
Cell Site Lease Buyout Values
The amount of a cell site lease buyout depends on the rent being received under the existing lease, the wireless carriers on your property, the terms of the lease, the cell tower or rooftop antenna location, the duration of the period for which our investor has the right to collect cell site rent on the property, and a number of other variables that make up our risk assessment.
Maximizing the Equity Value before you Sell
The one major concern to look for in your lease is that often a cell site lease can be terminated with as little as 30 day notice. This makes the cell site lease value a huge risk in terms of investments. We find that unless your plan is to grow into a large cell tower company, it is often best to negotiate the highest possible lease amount with the best escalator %, then convert your tower to an easement and sell it to a larger tower company for a maximum buyout. You can then convert your funds through a 1031 exchange into better performing and less risky real estate assets.
If you’re interested in obtaining a free valuation estimate, simply contact our team and we will have a Letter of Intent for a cash offer to you within 72 hours.