cell phone towers

nmballa · Posted: Jan 03, 2010 3:46 pm Post subject: cell phone towers

Somebody on here must know this. Is there a standard lease period, and for how long, on cellphone towers. Looking at a property that has one on it. Haven't seen the lease yet but it went up within the last 2 years. Just trying to figure what is left on the lease.

RUSSIAN · Posted: Jan 03, 2010 7:03 pm Post subject:

I use to work on cell sites, I have no knowledge of lease length, but I would think long term like 10 years would be minimum. I do know that they pay very well, 2-3k a month(per carrier) in most cases. I helped build a verizon site in the basement of a 3 story building, the owner of the company was going to get around $2500 a month. He was looking into getting other carriers in there(this was a few years ago before all the mergers). Most sites have multiple carriers, so a property owner could get paid pretty well in most situations.
Also, i would think having a tower on your property would pay quite a bit more then some equipment in the basement and roof of a commercial building

Chattwake · Posted: Jan 04, 2010 5:44 am Post subject:

I would check to see if the lease is renewable regardless of the term. Most companies won't make the capital expenditure involved in building and placing a tower unless they are pretty well guaranteed to be able to leave it there for a looooooooooonnnnnnnnnnngggggggggggggg time. Most likely, they can nenew the lease over and over and over and over so long as they pay rent in a timely fashion.

nmballa · Posted: Jan 04, 2010 8:47 am Post subject:

Just checked into it. The tower lease has 3 years remaining on the contract. I would assume that they would renew since it's a fairly large tower. The rental income is 900 per month. If I can get them down in price the property will pay for itself. My only major concern would be if they don't renew in three years time.

nmballa · Posted: Jan 04, 2010 8:51 am Post subject:

10,000 sq. ft. warehouse, free of charge. Sounds like a win win.