| Q: Who are the carriers who could likely present | | | | each other on wireless devices. |
| me with a cell tower lease to be negotiated at | | | | Q: How much can you get for your cell tower |
| my property? | | | | lease? |
| A: Generally the wireless carrier will not present | | | | A: Isn't this always the big question... And our |
| you directly with a cell tower lease. One of their | | | | answer is that it depends how badly they need |
| wireless site acquisition or real estate managers | | | | your site and where you are located. The closer |
| will usually contact you first to gauge your | | | | to the heart of a major metro area, the greater |
| interest level. You want to make sure before | | | | the demand for wireless coverage and capacity |
| entering into a cell tower lease agreement with | | | | will be, and the more you can get. Rooftop sites |
| any of the wireless carriers doing business (ATT, | | | | vary from ground leases. For example in |
| Sprint-Nextel, US Cellular, Metro PCS, ClearWire, | | | | Columbus, Ohio you might get $1,100 per month |
| Verizon Wireless, Alltel, T-Mobile) or sign a | | | | each for three carriers on your rooftop totaling |
| contract with any of the large tower | | | | $3,300 per month. While if you had a cell tower |
| development or rooftop management companies | | | | on your property in the same city you might get |
| (AAT, Crown, American Tower, SBA) that | | | | $1,200 for the first carrier who built the tower, |
| conduct your due diligence, but don't wait too long. | | | | and to additional carriers pay rent to the first |
| Also if you're lucky enough to be contacted by | | | | carrier to co-locate on their pole, and then each |
| any of these firms, make sure that your you or | | | | pay you $900 for ground space rights, or a total |
| your lawyer don't negotiate yourselves out of a | | | | of $3,000 per month. |
| cell tower lease. Often times attorney's start | | | | Q: Shouldn't My Attorney Be Able To Guide Us? |
| marking up a lease agreement just to get billable | | | | A: A cell tower lease is a very intricate and |
| hours. If carriers have to waste a lot of time | | | | specialized contract that is weighted heavily in |
| going back and forth they will move onto another | | | | favor of the cellular carrier. But think about it, it |
| site that's willing to do business, and then you will | | | | needs to be. Getting a cell tower built on your |
| wind up looking at the site instead of collecting | | | | property is like having Donald Trump saying, "I'd |
| rent from it. | | | | like to have a small portion of your ground space, |
| Q: What should I look for in my cell phone tower | | | | and I'm going to build a structure on your |
| lease? | | | | property that costs hundreds of thousands of |
| A: A properly executed cell tower lease should | | | | dollars at MY expense, and it can potentially bring |
| protect your ground space rights, rooftop space | | | | you $1-2 Million in rental income over a 25-30 year |
| rights and address subleasing / subletting issues | | | | period if we can develop it properly. But I'm only |
| that many cell site owners often time miss. It will | | | | going to do this if the contract protects my |
| also include tax language to protect you from | | | | investment. And if you don't like it, no hard |
| assessments. Also, it is crucial to properly develop | | | | feelings, the guy next door has 2,000 square feet |
| the site (height of tower and available ground | | | | of space and could use the retirement money." |
| space) to allow for expansion and collocation | | | | Now nothing against Mr. Trump, because he is an |
| which will increase revenues on the cell tower. All | | | | icon of success, but if you were going to sign a |
| cell tower lease exhibit drawings should be | | | | deal with him would you use an average attorney |
| completed by a state licensed architectural | | | | or get a top-gun attorney? And that's where we |
| engineering firm. I could write a list of a dozen | | | | run into a shortage of talent in the marketplace. |
| things that seasoned real estate attorneys miss | | | | Those who can afford it hire a specialized cell |
| regularly on cell tower leases, but then where's | | | | tower lease attorney, those who can't cross their |
| the fun in that? | | | | fingers and hope that they are getting a good |
| Q: I don't know anything about zoning or | | | | deal. |
| construction project management, should I even | | | | That's why cell tower development and leasing on |
| bother with getting a cellular site built on my | | | | your own is a challenge and why property owners |
| building's rooftop? | | | | who can find a partner to work with are well |
| A: The carriers will not select your site if it is not | | | | served in both the short and long term. |
| feasible for development from a number of | | | | Q: How can I get a cell tower lease signed for a |
| aspects, mainly zoning, and land use perspective. | | | | tower on my property or antennas placed on our |
| Only enter into a cell tower lease that puts the | | | | roof? |
| burden and expense of obtaining permits and | | | | A: Having an uncle working in the real estate |
| approvals on the carrier or tower company, not | | | | department at one of the carriers is your best |
| on you the Owner/Landlord. | | | | bet. If that's not an option, submitting your site to |
| Q: What if cell towers become obsolete? What | | | | the carriers directly gives you roughly a 1 in 1,000 |
| happens then? | | | | to 1 in 10,000 chance for site selection. |
| A: Carriers are heavily invested into the | | | | Here's our insider secret to getting a cellular |
| development of the wireless network. Over 70% | | | | carrier interested in your site, revealed for the |
| of the U.S. population uses cell phones. So if you | | | | first time anywhere. First, pray to the gods of |
| hear rumors about a balloon or blimp or satellite | | | | Radio Frequency. Then print up a dozen or so 18 |
| being used for cellular technology don't be fooled, | | | | inch x 24 inch "bandit signs" on your property that |
| cell towers are here to stay. We didn't stop using | | | | say in bold letters "I Want a Cell Tower On My |
| Sony Walkmans either, they just call them iPods | | | | Property." Your neighbors will probably steal them, |
| now, but people will always want to have personal | | | | but keep them posted on your property in a |
| music players, and the same holds true for | | | | visible area. If a site acquisition consultant happens |
| personal communication devices. | | | | to be driving that way, you should get a call. |
| Q: How long will my cell tower lease be good for? | | | | Last Question... (Extra Credit) |
| A: When you sign a cell tower lease the lease | | | | Q: What's the difference in signing a cell tower |
| term will be initially for 5 years with two renewal | | | | lease at $2,000 monthly with 2% yearly increases |
| terms in most cases, and an additional ten year | | | | vs. the same monthly rental amount at 3% early |
| term after that. Since no one has a 35-year | | | | increases over a 25-year cell tower leasing term? |
| cellular tower lease as of yet, we can't say how | | | | A: The difference is $132,000 over 25 years. |
| long they can be extended for, but assume that | | | | WOW!! Are you happy or are you kicking |
| your cell site leases will be extended for as long | | | | yourself? |
| as you own the site and people need to speak to | | | | |