There’s nothing quite like attempting to negotiate the lease of a cell tower. Unfortunately, this is a business that usually leans in favor of the cell phone companies. There are many options out there for them to look at, and a lot of open land if none of those options work. And at the end of the day, if they don’t like your deal they can just walk.
However, that doesn’t mean you need to bend over backward and accept the table scraps the cell phone companies offer you. There are ways you can negotiate your cell tower lease rates effectively. Read on to learn more.
Knowledge is Power
In order to successfully negotiate your cell tower lease rates, you need to do your research. If you aren’t at the top of your game, the cell phone companies are going to take advantage of you.
It’s never a good idea in any negotiation to take the word of someone who represents and is paid by someone you are negotiating with. So don’t get your information from the cell phone tower representatives.
When you go into these negotiations, make sure that you have an expert on your side to give you that power in knowledge.
If you and the cell phone company cant agree on terms for your business together, there is no reason to attempt to revise the lease first.
When it comes to cell phone providers, it’s a good idea for their representatives to ask for the cell tower owner to change the lease provisions. However, it’s not in your best interest to go in that direction at this point of negotiation.
Before you get down to the nitty-gritty of the lease, make sure that you and the cell phone company completely agree on all business terms. This ensures that your deal won’t fall through after you’ve spent countless hours and money fruitlessly adjusting the lease for no reason.
Understand Rent Calculations
Unlike with real estate, the rent of your cell phone tower isn’t going to be calculated based on square footage. They are technically leasing area on your land, sure, but you should never accept a deal based on rent per square foot.
The area of your cell tower and site is likely small. The value of it per square foot just doesn’t equal the actual value that it can provide.
In order to ensure that you’re getting the best rate for your lease, contact an expert who knows what the tower is worth in terms of the cell phone company’s use of it.
Rent will be calculated based on different things. Most importantly, cell phone companies consider the space that they need to install their equipment and the functionality of the space.
Cell phone tower companies don’t just look for space for themselves, but also space for co-locators and subtenants.
Absolutely every aspect of this deal is something you can negotiate. The lease’s area, terms, rent, rent escalator, access rights, and everything else associated with this deal is negotiable.
Just because the cell phone company are the ones who lead the discussion doesn’t mean that you cant be deeply involved in every aspect of it.
It’s imperative that you read every single line of the contract. If there is something in there that you don’t like, or the language is fuzzy and you’re not sure if there’s a loophole you’re uncomfortable with, ask them to rewrite it.
In every business deal, you need to know what you’re signing before you sign it. Don’t let the cell phone companies pressure you to sign when you’re not ready and make sure you have a lawyer on your side to ensure that everything is fair.
Have an Expert On Your Side
In every deal between a cell phone tower owner and a cell phone company, the cell phone company uses experts and representatives to help them along. There’s a good reason for this: it gets them good deals, as an expert can run a current cell tower lease rate analysis.
It’s critically important that you seek help before you enter negotiations with the cell phone tower companies. It’s really the only way to ensure you get a fair deal.
Things to Consider when Negotiating
There are many different factors that you have to consider when you negotiate with a tower company. Learn how to best negotiate your cell tower lease buyout!
For example, you have to know the characteristics of your building, like how tall it is compared to the other buildings in the area and how it is different from other areas nearby.
You should also know what options the company has as far as other buildings in the area and whether or not your property is even the right kind of space for them to build a tower and expand it later on.
Your power at the bargaining table relates directly to the options that you give the company and the value your location has.
Negotiating Cell Tower Lease Rates
It doesn’t matter what kind of negotiating you need to do, it’s a difficult task. Often times, you’re the underdog up against massive cell phone companies and you feel like you’ll never have the upper hand. However, it is possible to negotiate with these companies and if you want to get the money you’re entitled to, you need to try.
Negotiating cell tower lease rates might seem like an impossible task, but it’s not. Let us help. Contact us today to learn about how we can help you get the lease rates you deserve.