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Skyline Consulting Service

Information Technology and Services · Houston

It might seem like winning the lottery to have your property picked as a cell phone tower site. “What is the maximum rent I c ... an get for my property?”. Cell phone tower companies don't pay enough for leases. There is much more complexity when it comes to a cell tower lease because it involves technology, legal, engineering, wireless carrier marketing, and business/professional/personal motivations of roughly 30 professionals assessing and evaluating the cell site’s contribution to the wireless carrier’s network. Whether a negotiation is for a cell tower lease renewal of an existing cell site or a new “greenfield” (never before existing) site, rent rate is usually the first concern raised by our wireless landlord clients. Therefore, we will provide the major factors that influence wireless rent rates to help landlords understand how monthly cell tower rent rates are determined. Contractors are motivated to drive down cell tower lease rates because their compensation is directly tied to their ability to reduce wireless rent cost to their employers. In many cases, these “lease optimization” firms use scare tactics to reduce rent rates by telling landlords that the lease would be terminated if the landlord is not agreeable to reducing rents for the next 25 years. The wireless lease negotiations work starts when the first draft of the lease is received from the wireless carriers. Strategically, carriers and tower companies should never be given more space than they require. This gives the property owner leverage to ask for more money when site expansions are required in the future by the wireless tenant. Knowing the application the site is used for, the services they are offering, and how the carriers intend to operate the site will disclose how much land they really need. Landlords and ill-informed “consultants” often mistakenly see “lease negotiations” as one-dimensional variables involving just the rent amount. read more

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