The Cell Tower Lease Rates For Cell Companies

What is a Cell Tower Lease?

A cell company requires setting up towers at various locations. They need these towers for building communication signals, ongoing research, and establishing networks for commercial and business use. However, for any company, it is not feasible to buy the land to set up the tower. Not only acquiring the land is expensive, but the companies require a continuous installation of the tower so they cannot afford to buy property at different locations.

The cell tower lease allows the tower settings as it is an agreement between the tower company and a landlord whereby the landlord will allow the company to set a tower on his promises for a stipulated time at an agreed rent. The cell tower lease is a legal and binding contract, and when both parties agree to the deal, they will have to follow the stipulations of the agreement until the end of the lease period. During the lease period, the company has the right to inspect, check, and work on the towers. The leasing period can last from a year to up to ten years.

Cell Tower Lease Rates

The lease rates are the contractual amount the towering company has to pay and continue to settle throughout the tenor of the cell tower lease. Landlords are inclined towards these rates as it allows them to generate a good second-income in the form of tower rental. The cell companies also prefer to find a perfect partnership where they have to pay an industry-standard fee for the leasing and no other charges.

Several factors can determine the cell tower lease rates. On average, a cell tower leasing can cost the company anywhere between $100/year to up to $200,000/year. The considerable variation in prices is because of many factors. For example, one thing that can set a leasing rate is the size of the tower. Another consideration is the duration of the lease and the location where the company wants to set the towers. Likewise, there are properties in commercial areas that attract huge rents, so if a company approaches the landlord to occupy the space for a year with the cell tower, the landlord will charge a much higher rent.

Lease tower consultants can help in finding a tower company and the property owner who have the willingness to enter into the cell tower lease rates. The consultant also advises on matters such as the rent for the leased premises, and the viability of the area for the tower company.