What is the highest rent price I can get with my property?
This is the most common query that customers have. Of course, every one would want to get the optimal value for their property. Who wouldn’t want more money? The next question they ask is How would leasing a Cell Tower Site affect the price of my home? It is just natural to be curious and careful about these kinds of deals. There are a lot of factors that affect the price of real estate: colour, style, quality, age, neighbourhood, comparable sales, and upkeep. Based on this list, you can see how the price of your real estate will get affected.
Leasing a Cell Tower can prove to be complicated. To name a few constituent factors that have to be taken into consideration i.e legal, technology, wireless carriers, engineering a large group of professionals prospecting the value of the site and worth to a wireless carrier’s vast network.Prior to covering many of the facets that have an impact on the value of a cell tower lease, we’re going to cover the selection process for the many prospective cell sites.
Discerning landlords will appreciate how competitive this process in selection is and having a better idea of the highest price of value without getting over the top.
Why Are Cell Sites Needed?
The following is a list of reasons to why a cell site is needed:
1. It helps to improve capacity and restrictions in the area local to the cell site this is needed by Radio Frequency Engineering department. This can enable additional users chatting, internet browsing.
2. Additional Sites: As there are always new developments local such as businesses, homes etc this is where RF Engineering Departments endeavour to expand the network.
3. Poor coverage can stir the need for additional cell sites in order to improve it i.e internet browsing, downloading and cell signals etc.
4. The newly discovered market in a particular area in need of cell coverage or better cell coverage.
5. To optimize efficiency by a relocation of cell sites to mitigate interference.
6. The improvement of motorway coverage to mitigate poor connection with known areas.
7. Developing coverage requirements enhancing for encompassing homes and businesses.
8. Improvements of data capacity, to enable wireless users to have access to a faster connection for media such as audio/video. Data capacity throughout requirements to be improved so that wireless users can have faster data connections for audio/video uses
From those prime examples, engineers plan new cell sites and give the real estate department a search ring to find new locations within the requirements of the guidelines due to engineering. Every search ring normally holds up to three locations of real estate which meets the needs of the engineering requirements and the standards of the engineers.
The engineers need to ascertain what are the facts in relation to these sites such as the following examples i.e. Can the designs on that location be constructed, can it be zoned and is it leasable. This is in order to ascertain which of these sites is viable for use. Hopefully through that process of elimination one site ticks all three boxes. However, it is not uncommon for experts to prospect more candidates such as ten or more, due to the aforementioned variables
Difficulties that wireless carriers generally encounter are:
1. Large Institutional Owners i.e. Governments or Universities
2. The locals will object to the construction of the cell site because it can be unsightly to look at.
3. Logistics: If it’s in a mountainous region where the cell site can’t connect or the expenses to keep one powered.
In numerous cases, three cell site candidates are sufficient engineering choices to inspire the site acquisition team to mobilize. The site acquisition team executes research by examining title reports to ascertain the identity of the owner of the property, examine how complicated it might be to communicate with a few of these owners. Of course, site acquisition experts are human and will gravitate to the path of least resistance. The site acquisition specialists will aim to figure out of which these three candidates have the more best landlord to work with; higher probability of good results, is the more open towards requests of information, and open to cheaper rent. Finding ideal landlords is a little bit harder.
Based on the information gathered the site acquisition specialist will study them prior to making initial contact with the owner. This is to arrange a visit with other types of experts accompanying the specialist upon the visit i.e. engineers, architects, construction staff, zoning specialists, this is to make a distinction of which of the three is just right and to order them in a list of which to prioritize. The distinction between the three candidates is vital. This allows them to establish the number of resources of the particular wireless carrier will assign to each, namely time and money. If one should fall short of a requirement it’s moved down on the list of priorities and move to the following site. It’s vital for the distinction between the primary site and the backup site to be made in regards to a cell tower lease.
What Affects & Determines Lease Rates
Rent is normally the first concern on the wireless landlord’s mind. For the benefit of the landlord’s discernment below are a few examples of what can affect the monthly rates to a cell for a cell tower to be rented out.
1. Rooftop Cell Sites of Commercial Buildings
Are the cell tower antennas fitted on top of your commercial property roof? These are rooftop cell sites and is one of the ideal locations to set one up and great for cell tower lease. There are different types of variations of installations such as a “raw land site”. In general rooftop cell sites command a higher rate than the aforementioned raw land site. This is great for a wireless carrier as they don’t need to invest time and money into constructing a tower to support their antenna. This also enables them to save money on insurance, maintenance and tower climbers and other risks.
Metropolitan areas have a large concentration of cell sites as they benefit from the high rooftops of tall buildings and a vast selection to choose from too. Obtaining approval for jurisdictional zoning is much harder to boot within that type of area, thus rendering rooftop sites more ideal for the wireless carriers due to availability.
To a degree rooftop installations do entail some complexities the main one being a structural analysis; to ensure that the roof is strong enough to support the weight of very heavy installations. With greater requirements and disruptions to the building’s structures, the landlord can demand more money on rent for this particular cell tower lease.
2. Population Concentrations
The distance of cell site locations to large concentrations of inhabitants is a positive indication that landlords can command a lot more lease rental revenue versus more isolated locations. If a cell site location is close to a large metropolitan area, therefore cell tower rental rates will obviously be higher because of the importance of the location to the wireless carriers. Due to the significant amount of activity within a metropolitan area such as downloads, internet traffic, calls and is cost-effective to boot. For reasons like those, the wireless carriers will be more inclined to pay more.
3. Neighborhood Perceptions Relating Cell Towers
In this particular industry, there’s a term called “Not In My Back Yard Syndrome” or NIMBY for short. This is when a community objects to the idea of having a cell tower within their neighbourhood, one of the main reasons is not many people consider it nice to look at, they will even go to lengths such as making protests; city cancels may even deny any applications. However, there will be discerning individuals that can recognize an opportunity to make money, this particular individual will probably know how to maximize the cell tower lease rate due to scarcity within the affected area. These kinds of communities typically have high-value homes which are located by places like lakefronts and waterfronts, which you can understand the local’s efforts of preserving the scenery. Using this information a discerning property owner will definitely take advantage of this strategic position and push a higher monthly rent on the cell phone tower lease.
On a new installation, raw land sites or rooftops, competition will have an impact on rent prices, because other cell site locations will be more feasible and ideal in other aspects to boot. There are will be the plenty of things to consider for the wireless carrier on selecting on a candidate (landlord). These factors range from location, conditions for zoning approval the locals, a willing landlord, cost of construction on the particular property. If you are a landlord with the ideal conditions to accommodate a cell tower, you are more likely to command a higher cell phone tower rental rates. Naturally, if you’re a landlord that has viable conditions but not the most ideal conditions, it can impact the cell phone tower rental rates.