Cell towers / Cellular Tenant in commercial property

[Shanti S.]

I searched but didn't find any information on this so I thought maybe this thread could collect any experience out there on the subject - having cell antennas installed on your commercial building as an additional stream of income.

I've been eyeing a vacant property for a couple of years now, it's commercial with a beautiful hilltop site in an area with spotty cell coverage. It already has a tower on it where cell antennas could be installed without changing the look of the property at all - so improved cell service for everyone with no new ugly cell tower to complain about.

Anyone have experience courting cellular companies or leasing to them?

I would love to own this property but until I thought of this I was struggling with how it would pay for itself - this income stream could possibly make the difference between a good deal and a bad one...there is a ton of space to rent out here as well.

[Ingrid Nagy]

Generally in cities (metropolitan areas) leases run about $19000 to $24000/yr. leases are 5 yrs with (5) five-year renewal options usually at 15% bumps. Towers in country areas-pastureland are less. My dad has a monopole on farmland and he is in year 17 of a 25 year term. Since his lease is old the base rent is one-fourth of mine. Any increases in real estate taxes are borne by the cellular carrier as well as legals if it goes to litigation (assuming the carrier really wants the site badly). Construction expenses also are borne by carrier. If the installation is on an existing building the building dept may require upgrades to accommodate the installation - this is also paid by the carrier. i.e. I needed a larger electrical service to accommodate the carrier - the building department required an upgrade of not only the amps running to the building but an upgrade of all circuit breakers and boxes to each individual apartment's service. Carrier covered this expense.

In the old days sites were always selected on private property because ordinances prevented this type of construction on municipal land, buildings, schools etc. Many towns have revised their ordinances now and are permitting towers on public property because they are realizing the income stream to the budget. In my case the town made the carrier search in the "search ring" for a comparable site on a commercial property because the ordinance provided that these installations could only go on commercial buildings. There is also a middle school 250' away from me. However, the then existing ordinance prohibited this type of install within 200' of a school. The Board repeatedly denied the application and the case went to the Superior Court where the Board's decision was overrided because FCC guidelines supercede the municipality - cell towers provide for the "Public good" - emergency 911 phone service.

Where the towers make their money is not only through our monthly service fees, they sublease and co-share with other carriers. My dad's lease is an old one and is not with a cellular company but with a company that merely locates and constructs. Then they sublease to carriers. His site now has 6 major carriers on it as well as the State emergency system.