Businesses are constantly looking for new ways to leverage technology and increase their profits. These innovations can range from incorporating automation into daily tasks to capitalizing on otherwise unused space for cell tower leases.
If you’ve been wondering if adding a cell tower to your commercial property can help your business, the answer is yes. Here’s what you need to know about cell tower leases and if you should add a cell tower to your property.
What Is A Cell Tower Lease?
A cell tower lease is when a business or individual rents space to a communications company like AT&T for a cell tower. These lease agreements can generate thousands of dollars monthly for the property owner, depending on the location and parent company.
Choosing to lease a cell tower isn’t a decision to be made lightly. These agreements tend to be long-term, often spanning 100 years. You can read more about the nuances of these agreements in this cell tower article by Vertical Consultants.
Pros Of Adding A Cell Tower
One of the primary benefits of adding a cell tower to your property is the revenue potential. This is a fantastic opportunity for people with a lot of unused property that isn’t suitable for development, as well as commercial building landlords. For commercial landlords, adding a cell tower to the building is the ultimate tenant.
The vertical space on the roof is unsuitable for human tenants, and adding a cell tower can create a nice, recession-proof nest egg that pays for the property even in hard times. COVID-19 is a prime example of the benefits of having a cell tower, as many tenants found themselves unable to pay their landlords during periods of lockdown.
Cons Of Adding A Cell Tower
While the benefits of adding a cell tower outweigh the cons for many people, it’s still essential to understand the bigger picture when entering into a long-term agreement.
Many people view the duration of the agreement as a barrier. While a 20-year lease might seem palatable, a 100-year lease is hard to conceptualize. These agreements work for big businesses like Walmart and Disney but could be tougher for smaller businesses to navigate. The long-term approach can also limit the future development of the property and make the owner feel locked in.
While there’s no option to break the lease for those adding cell towers to a property, the cell tower company often adds a clause for them to break the lease early contingent on a variety of factors. This can make financial planning uncertain.
Another common concern surrounding cell towers is the potential for health issues. While there is no current evidence that exposure to cell towers has a lasting effect, this technology is relatively new. Long-term effects could remain unknown for another fifty years.
Finally, cell towers are an aesthetic concern for some property owners. If you have a tall, nondescript office building, it might not be as much of an issue. However, if you have a more rural, natural property, adding a cell tower could take away from the aesthetic.
Should You Add A Cell Tower To Your Property?
Adding a cell tower to your property is contingent on a lot of variables. For example, the size, location, and topography of your property will play a role. You might find out that adding a cell tower will only earn you an extra $100 a month instead of the thousands you had envisioned.
It’s worth reaching out and finding out what your options are. Nothing is final until you sign a contract, so exploring the opportunity bears little risk. Adding a cell tower lease to your business has the potential to improve your profitability.
If you are interested in even more technology-related articles and information from us here at Bit Rebels, then we have a lot to choose from.