Anyone ever lease to a cell tower ?

Just wondering because we have an offer from Verizon and don't know the rates or the ups and downs. Any info would be appreciated.

Nord

We have one on one of the ranches, I'll find out the details.

Nord said:

Just wondering because we have an offer from Verizon and don't know the rates or the ups and downs. Any info would be appreciated.

Nord

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We have a giant palm tree cell tower in our yard. Never had any problems. Don't know the financials. Where are they going to put it. ? At the mall.

Blythe property

oldschool said:

We have one on one of the ranches, I'll find out the details.

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I would appreciate it. You can PM me if you'd like.

Nord said:

Blythe property

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My parents church did it and from what I understand it pays pretty darn good

Nord said:

I would appreciate it. You can PM me if you'd like.

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Turns out they didn't put it in. They wanted to remove trees and needed other access that didn't really work. Off the top of my head,I think it was around 10K a year? I'll double check that number though.

That sounds about right. ^

One of our neighboring ranches has a Verizon tower and from what I understand they are pretty happy with the arrangement.

Had a friend that was getting about $1600 a month off his.

From what I know, you just lucked the fuck out!

(You might want to get in touch with river)

I have heard of people getting $2500.00 a month. They tried to give them $5,000.00 a year at first but it's all just a negotiation.

Nord said:

Just wondering because we have an offer from Verizon and don't know the rates or the ups and downs. Any info would be appreciated.

Nord

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Zoning in the area dictates price.

We have windmills on some of our farms in the Midwest. Because of the location (areas with dependable wind), we're getting a small premium on the lease.

We have multiples in our branches. They all range in price from as low as $2200 per month to $4700 per month. They're all negotiated though and we've had them for years.

They can be a bitch for us. We have electric security fencing all around our properties plus motion/alarm systems. One of the stipulations is that they have to have 24 hour access to the towers. For us it can be a pain because they work on them at all hours of the day/night. We have to supply them with our alarm codes, which is no biggie. But getting them to set them when they leave at 1am is a whole different story.

If the property is always open then it's a no brainer.

Damn that sounds like a great deal! How can I pimp out my property for a cell tower! Negotiate hard and enjoy that cash flow man!

rivrrts429 said:

We have multiples in our branches. They all range in price from as low as $2200 per month to $4700 per month. They're all negotiated though and we've had them for years.

They can be a bitch for us. We have electric security fencing all around our properties plus motion/alarm systems. One of the stipulations is that they have to have 24 hour access to the towers. For us it can be a pain because they work on them at all hours of the day/night. We have to supply them with our alarm codes, which is no biggie. But getting them to set them when they leave at 1am is a whole different story.

If the property is always open then it's a no brainer.

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Do you work for Verizon ?

Nord said:

Do you work for Verizon ?

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No. I'm in the construction rental equipment biz. The cell providers love us because we usually have lots of land, multiple locations, in high cell activity areas, either own or have 20-25 year property lease agreements and are located close to freeways.

From what I've heard, it really depends on location and other locations availability, as far as your monthly take. I've heard everywhere between 800-2K per month

I'm under the impression that the real money comes when the first 10 year agreement comes up and you get to negotiate a new contract. I seem to recall that several carriers can hang shit on the same tower, not sure if you can get a cut of that also. Call Bob

whiteworks said:

I'm under the impression that the real money comes when the first 10 year agreement comes up and you get to negotiate a new contract. I seem to recall that several carriers can hang shit on the same tower, not sure if you can get a cut of that also. Call Bob

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Most of the time a carrier will lease the land, build the tower and lease space to other carriers on the same tower. It's not uncommon for the big 3 to have transmitters on the same tower.

I'd imagine it would be very advantageous for the carrier to spend a little more on the lease renewal considering the cost to build the tower is fairly high. I'm guessing a tower build with Fiber running to it has to be in the $1M range.

Verizon hit me up a few years ago and wanted to put one at my shop, I told them fuck that, I didn't wanna cheapen up the place, they are tacky.

Our company just bought some land in Laguna Niguel. Has a Verizon tower on it. We are now getting $18,000 a year ($1,500 a month) for 5 years. After year 1, each year through year 5, their rent will automatically increase by 5%. Renegotiate comes year 6.

This land is in the middle of nowhere with nothing around it. Are any of these properties you guys are talking about similar ?

Nord said:

This land is in the middle of nowhere with nothing around it. Are any of these properties you guys are talking about similar ?

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Unfortunately, no. The property I am talking about is in South Orange County in Southern California. Posh little area right off the 5 freeway.

Ok thanks.

Havasu1986 said:

We have a giant palm tree cell tower in our yard. Never had any problems. Don't know the financials. Where are they going to put it. ? At the mall.

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You have one here in the city?

As others have said, negotiate the sublease clause so you get a cut (50% ?) of that also. If the property is fenced try to locate them in a corner where you can isolate them and they can have access through a gate into their portion only, also think ahead for your plans for the property so they are not in the middle of your future building area. Is Verizon going to own the tower? A lot of the carriers end up leasing or selling the towers to American Tower or similar. I have friends with one on their property and they get 2k a month, 20 year lease with 10 year extensions after that with annual increases. Don't expect 2k in Blythe, there are probably plenty of people there that would take $500.00 if it's really in BFE and not on the I 10.

Aunt n uncle have one on the backside of the ranch here in norcal off the 505...1200 a month on a 10 year deal got 2 left then Contract time...

Wakebrdr94 said:

You have one here in the city?

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No at my office / shop in La Habra.

Wakebrdr94 said:

You have one here in the city?

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Is this a YL question?Or can anyone play?

lets compare the difference in cellular site lease rates and revenue of a carrier lease agreed to at a rate of $2,000 per month at 2% yearly increases vs. a rate of $2,000 at 3% yearly increases.

$2,000 per month with 2% yearly rental increases = $768,711 in antenna rental income at the end of the 25-year term.


$2,000/ year @ 3% yearly = $900,732 in rental income at end of the 25-year term, a difference of $132,021.


As a general rule, cell phone carriers leave little if any leverage for landowners to renegotiate the business terms of the lease, even during the renewal periods. Though you will see several renewal periods in your cell site lease, this does not translate into an opportunity to renegotiate lease agreement terms.

Heres my take after doing some quick research, the devil is in the details, find someone who knows WTF they are doing when it comes to telecom lease negotiations. Find out exactly how desirable your location is for them and why, maybe they are just spitballing offers at everyone in the area and looking for a dummy to take a bad deal, or maybe your specific location fills a void?? being that there is a whole desert full of land out there I would think they are spitballing looking for a dummy, someone knows, but not this guy

Gelcoater said:

Is this a YL question?Or can anyone play?

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all are welcome, We're not an elite bunch

Gelcoater said:

Is this a YL question?Or can anyone play?

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Depends. What is YLs city motto. We may let you in.

Havasu1986 said:

Depends. What is YLs city motto. We may let you in.

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Lol,I dunno?Sad considering I grew up there in the 70s and early 80s?
Went to Fairmont Elementary,Bernardo Yorba Jr high and Esperanza.
But no idea what the motto is,maybe something to do with Nixon?

Gelcoater said:

Lol,I dunno?Sad considering I grew up there in the 70s and early 80s?
Went to Fairmont Elementary,Bernardo Yorba Jr high and Esperanza.
But no idea what the motto is,maybe something to do with Nixon?

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Upland = city of gracious living

Yorba Linda = land of gracious living

We don't have john force, but we'll let ya in

i worked for AT&T.

what you can get boils down to how bad they need that tower in your precise location and/or what other options they have.

chances are in Bythe there is lots of open and cheap land. So dont expect some huge windfall offer. They do what are called search rings where multiple potential locations are evaluated. there are many factors that go into it. Dont think for a second they arent talking to neighbors in you vicinity or have other locations in mind.

as for the chance of multiple carriers jumping on the tower, its entirely possible. sometimes what happens is the carroers anticipate this, so they lease more land than they need and then sub-lease the space and room on the tower. you are cut out. if you only lease them enough land for their needs and another carrier wants on, then you can negotiate with the carrier for the land and they have to also pay to get on the tower. how much land they are looking for gives you insight to what their intentions are.

keep in mind more carriers on the tower potentially means more $$$ but it also means crews from each carrier accessing the location more often.

good luck.