Cell Site Leasing: An Overview

Cell site leases might sound a bit peculiar to some. However, it is a simple concept wherein one can earn money by basically not doing anything. As mentioned above, it is a matter that is not familiar to a lot of people. Hence, it gets a lot of misconception. This article will answer what it is and the factors that influence it. So, read on.

What is cell site leasing?

Cell Site Leases

Cell site leases work the same way as real estate leases. Cell site operators and companies will try to lease your piece of property so that they can put up cell towers and antennas that they can utilize to expand their coverage. Just like real estate leases, cell site leases can last in varied durations depending on the contract that has been agreed by both parties. The payment agreement and the terms of the agreement can also vary from contract to contract.

What are the factors that affect rates?

Cell tower lease market rents are dictated by a lot of factors. Here are some of them:

·         Your site’s attractiveness – This does not automatically apply to the physical appearance of your piece of land or property. A site’s attractiveness usually refers to the location and the strength of signal that the cell tower, site or antenna give off. Most telecommunications companies usually do not prefer cell sites that are near rural areas because they tend to be less populated. As you know, mobile sites are affected by the number of devices that can interfere with the frequency of the waves sent out by the sites. So, the lesser people there are, the lesser the gadgets will be as well. This means that they will have less income.

·         Competition – If you are somebody who is seeking to be a cell site partner, one of the things that you should consider is competition. Let’s say you live in a metropolitan city like Chicago or New York. Of course, there will be a lot of landlords that own buildings like you do. Because of the competition, there might be a huge chance that the rental price might drop miserably. As the law of supply and demand goes, as the demand for a good or service drops because of the abundance of the supply, the cost or the value of the good or the service drops as well.

·         Kind of cell site – The size and the amount of land that the telecommunications company will be utilizing is also a deciding factor for the site. If your building has a billboard and the telecommunications company wants to utilize that, you can actually charge extra considering the cost that you have paid for to erect that billboard.

Things to remember

Not all telecommunications companies will give you the right price that you deserve. Of course, they will find a way wherein they can get maximum output out of a minimum input that they give. Finding a firm that will help you arrange complicated stuff such as a cell tower lease extension will be a huge plus. They will also give you an insight of what the right price is if you want to approve a new cell tower lease. So, do your homework.