Lease Geography: Urban vs. Rural Opportunities in Cell Tower Site Selection
Choosing the right place on your land for a cell tower, and the location of your land in general, is one of the most important factors to consider during cell tower lease valuation or negotiation. There are key differences between urban and rural landscapes that affect the cell tower lease agreement offer you’ll receive and what you can negotiate for. Today, we’ll discuss urban and rural cell tower sites and what you need to know about potential co-location on your tower.
Location Matters
Since cell coverage is needed everywhere, cell towers must be placed in both rural and urban areas. There are, however, certain factors about each land type that can drive the value of a cell tower lease up or down. In urban areas, there tends to be higher population density and therefore a greater need for strong, reliable cell service across large regions. However, due to the landscape, there are sometimes fewer ideal spots for cell towers. This strong demand for both service and property that can be used for a tower tends to drive up the value of a lease in urban areas.
Rural areas, on the other hand, tend to offer a lot more land to choose from as far as placement, but towers still need to meet zoning requirements and local regulations. As broadband access continues to expand to rural areas that previously haven’t had as much coverage, the value of those leases can increase as well. Cell Site Advisors understands the benefits and pitfalls of all types of cell tower locations and is able to help negotiate the lease value that your land deserves.
Understanding Cell Tower Lease Clauses
When valuing leases, land owners have a lot to consider. Cell Site Advisors in-house legal team is available to ensure that you’re getting the best value with the most protections possible. Topics to look for include:
Termination conditions
Site sharing rights
Renegotiation or renewal rights
Landowner’s rights
Lease term length
Clauses related to zoning and other location factors
Our experienced team knows what to look for based on the type of land or structure you’re considering putting a cell tower on and will ensure you receive a fair and competitive price for your cell tower lease agreement, regardless of whether or not you’re in a rural or urban location.
Co-location and Cell Tower Lease Value
One final factor that is sometimes considered in a cell tower contract is co-location fees. Co-location means that more than one wireless carrier is sharing the use of a single cell tower. If you’re in a location where there’s a high probability of need for that, it’s important to make sure your lease allows for revenue sharing from multiple tenants. Urban areas or areas with challenging terrain and fewer options to add new towers may be more likely to experience a need for co-location due to high demand or difficulty expanding. Cell Site Advisors considers all these factors when negotiating the value of a cell tower lease, so you don’t have to.
Ready to let us help guide you through the process? Schedule a consultation.
About the Author
Ted Unkel is a principal at Cell Site Advisors, which specializes in negotiating telecom leases and transactions for property owners. He has more than 20 years of experience in the telecom industry, mostly working in nationwide negotiations on behalf of Crown Castle, a real estate investment trust that works with landowners and property owners on cell-tower leases and real estate infrastructure.