Have you ever driven through your neighborhood or city and wondered how cell towers end up where they are? Do the cellular companies buy the property to have a place to install the tower? Is the government involved in securing land for cell tower companies?
You may be surprised to learn that cell towers are often on land that has been leased out by the property owner. This means almost anyone with available land can enter into an agreement with a cellular provider or cell tower company.
In a nutshell, this could be an additional stream of income if the opportunity presents itself.
Now I am sure you are wondering how much money you can earn on a cellular tower lease. Keep reading to see what the cell tower land lease rates forecast is for 2019.
What is Cell Tower Land Lease Rates?
A cellular tower lease is an agreement between a landowner and a cellular company. The owner agrees to lease land for a specified amount and time period. A lease can be for one year or up to 100 years.
The rates on a lease can vary significantly. Their worth is based on the usefulness it provides in a certain location. The location of the tower is also important since they do not always go up on land. Sometimes they are mounted to rooftops and billboards.
The cell tower leasing business is quite lucrative and is a multi-billion dollar industry.
Will Demand Continue in 2019?
Demand is at an all-time high and with the anticipated release of the “new” 5G technology the demand is only expected to increase. We are in an era where having additional sources of income is becoming the norm. If you have a property that fits the criteria, it can earn you a full-time income without working the hours.
Smaller Towers May Impact the Bottom Line
Expect to see smaller cell towers popping up everywhere. As the use of smartphones and tablets grow, more towers to handle the traffic will increase. It will mean more opportunities for cellular tower land leases but possibly at lower rates.
There is also a trend for these towers to be attached to utility poles. This move can have an impact on cell tower lease rates going forward.
What about Cell Tower Buy-Outs?
Another sector of cell tower land lease contracts is buy-outs. Property owners with existing cell tower leases on prime real estate may get contacted with an offer to pay a lump sum for control of the least.
This is a very risky proposition and should be discussed with a professional. With the growing popularity in the market expect these offers to increase.
Are You Looking to Lease for a Cell Tower?
Now that you know more about cell tower land lease rates, you may be ready to secure your lease. We have all the information on the types of towers that can be installed.
If this is you, contact us today and we will be more than happy to schedule a free consultation.