Cell Phone Tower Negotiations and Acquisitions

If a wireless carrier has contacted you about installing a tower on your land, you may be struggling with how to proceed with negotiations. The process for cell tower site acquisitions differs greatly from a standard real estate lease, and it can be hard to understand. Each land lease deal is different, and prices will change from location to location. Understanding the intricacies of cell phone tower lease negotiations can mean the difference in hundreds of thousands of dollars over the life of the lease.

How to Get the Best Lease Terms

When you begin negotiations with a carrier, you're up against professionals who deal with these transactions hundreds or thousands of times each year. Your inexperience with the negotiation process can lose you substantial amounts of money. While you can certainly do the research and legwork yourself, it's also a good idea to fight fire with fire. Acquiring help from a professional who deals in cell tower lease negotiations can make sure you get the best deal possible. Even with the help of a professional, you still should understand a few basic things about cell tower acquisition on your land. Ensuring you are well informed is the first step toward getting the best lease terms possible.

How to Get the Best Lease Terms

When you begin negotiations with a carrier, you're up against professionals who deal with these transactions hundreds or thousands of times each year. Your inexperience with the negotiation process can lose you substantial amounts of money. While you can certainly do the research and legwork yourself, it's also a good idea to fight fire with fire. Acquiring help from a professional who deals in cell tower lease negotiations can make sure you get the best deal possible. Even with the help of a professional, you still should understand a few basic things about cell tower acquisition on your land. Ensuring you are well informed is the first step toward getting the best lease terms possible.

How Much Land Should You Lease?

Typical cellular carriers start off asking for a plot of land that's 100 feet by 100 feet. The typical cell tower requires much less land, at around 300 square feet. You may be wondering why a wireless carrier is asking for more land than needed for a tower. Wireless carriers often negotiate for more land than they actually need for their tower with the aim of using the extra land to sublease to other carriers in the future. Be sure to keep this in mind as you begin negotiations. You don't want to be cut out of any revenue gained from your property if the carrier subleases a portion of the leased land to another carrier in the future.

 

How to Determine Your Land's Value

The variation in price from lease to lease can make it difficult to determine what target price you should seek for your land when negotiating with a wireless carrier. You may be tempted to reach out to other property owners with cell towers leases on their land. The value of other landowners’ contracts with wireless carriers should never be used to determine your negotiation strategy in regards to pricing. Oftentimes, the property owner just a few miles away took the first offer made, without negotiation. You don't want to base your target rate on another property owner's poorly negotiated deal.

Market pricing for cell tower leases can be very convoluted. Many wireless carriers are aware of this and often take advantage of the fact that landowners are unaware of the intricacies of marketplace pricing. Seeking out the help of someone knowledgeable about cell tower site acquisition and pricing can help level the playing field.