Factors That Affect Cell Tower Lease Rates

Tower companies are always on the lookout for properties that they can use to build and maintain infrastructure. Owners can accept offers to lease the land in return for structured payments over several years or even several decades. The amount will depend on various factors so learn about them and adjust your expectations accordingly. Below are some of the most important things to consider when determining cell tower lease rates:

Land Value

Just like other rental properties, the land value will have a great impact on the lease rate. Those which are situated in large cities will definitely fetch a higher price compared to the those in rural areas. Tower companies just have to increase their offers in order to get noticed since there is heavy competition for the land. If the offer is too low, then the owner can quickly shift to other suitors. Owners can more power over pricing given their wealth of options.

Terrain Type

The kind of terrain will also affect the rate. If a piece of land has an elevated surface such as a hill that overlooks a valley, then it is much more interesting to tower builders than a flat farm. They can build an antenna at a lower height and bring down the cost of construction while still enjoying wide coverage of area. On a flat valley, they are forced to build tall to avoid obstacles on the ground such as trees and buildings.

Strategic Location

The strategic location will also play a role in the calculations. If the place is near another existing tower, then it is not that interesting because coverage will overlap too much. If a company is trying to establish a presence at a certain location, then they might provide a better offer. If a property is positioned in just the right spot to maximize coverage with the lowest construction cost, then they will be willing to negotiate a good price.


The cell tower lease rates construction will require the transport of workers and materials. Therefore, the place should be accessible to heavy vehicles and habitable for people. This can be a significant issue in rural areas where roads are not as good and the basics such as water and electricity are non-existent or unreliable. There are ways to solve every problem but they will require additional expenses so they might have to subtract these from their lease offer.

Put yourself in the shoes of the tower company to get a feel for their appreciation of a land and its lease value.

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