Want the naked truth about cell tower lease rates 2021? How are they determined? Throw away your cell tower lease calculator. The cell tower industry has changed significantly in the last two decades. Verizon Wireless, AT&T and T-Mobile Sprint are mostly out of the business of owning and managing cell towers. The days of having a direct cell tower lease with a carrier are over for the most part. Carriers will generally have a direct lease with a building owner on a rooftop, church steeple, municipal water tower, or on a utility pole or electrical transmission tower.
NEW CELL TOWERS: Most cell tower developers will not offer you more than $900 or $1,000 for a new cell tower where your lease is directly with a tower company. Is your site worth more? Most certainly yes, but can you get a better deal? Possibly, but you are usually limited on the anchor tenant unless there are some extraordinary factors regarding your site. Most new cell towers in 2021 will lease for between $500 and $900 per month. Are there exceptions? Absolutely.
NEW ROOFTOP CELL SITES: Most rooftop cell sites and other new cell sites that are not installed on towers will be direct leases with the carriers and you will usually have much more flexibility in pricing. If you have the only viable structure within their wireless coverage area, you can see a higher rental price. Is it possible in 2021 to get $2,500 / month on a rooftop cell site in metropolitan areas? Yes it is, and you can get more too, as long as the carrier doesn't find a cheaper viable site with a landlord willing to accept less money than you.
The naked truth about cell tower lease rates in 2021 is that nobody wants to see a naked cell tower. That is industry jargon for an "empty or bare" cell tower. We love ugly cell towers with lots of dishes and antennas on them, the more antennas, the better. As the two wireless cavemen Partners Kevin and Steve from Tower Genius have been saying since they started walking upright and learned how to use the internet in 2008, all cell tower lease rental values are determined on a case by case, and site by site basis.
In 2021 we will probably start to see some industry consolidation on cell towers and cell sites where Sprint is present and the location is impacted by the Sprint T-Mobile merger. We know that American Tower is actively trying to convince landlords to accept 3 to 4 year (3X to 4X) one time payment or 50% rent reduction on cell towers where they are losing Sprint and have no other tenants, leaving them a naked cell tower.
2021 will be an exciting year in wireless infrastructure deployment. AT&T is fervently leasing and building out site for FirstNet. Cell tower landlords will potentially see DISH Wireless show interest in leasing tower space as DISH needs to lease approximately 20,000 sites to get their network up and running. All carriers are now rolling out their 5G networks at existing towers. This is why it is extremely important that wireless landlords seek out sound professional advice and guidance when extending their cell tower lease agreements in 2021. Sprint may be going away, but DISH Wireless is coming to market, and also EDGE Data Center installations coming to the bases of cell towers.
Cell tower lease renewals can be worth anywhere from $1,000 to $8,000 per month depending on your specific tower and location. Many towers lease extensions that we see end up leasing for $2,000 and $3,000 monthly. Each cell site renewal needs to be looked at individually to determine the proper valuation.
Do you have questions about cell tower lease rates 2021? Let's discuss.
Tower Genius is USA's Premier Cell Tower Lease Coaching and Consulting Firm. Find out how we help landlords and property owners in the USA maximize cell site lease values and get the best possible terms. Book a 30-minute discovery consulting call with Kevin or Steve Today.