Fair market value of your cell property can only be determined once you understand the value it delivers to the wireless carrier. Today, consumers cannot live without their mobile devices. Smartphones, such as the Apple iPhones and Samsung Galaxy devices, have driven data usage so high that carriers do not care to measure minutes and texts anymore. They bundle them into a single price. It’s the data usage where they really make their money.
Landlords Renew Lease At 1999 Rent Rates (even with 3% annual increases). So the need for speed continues as video, Facebook, Skype, YouTube, emails, live streaming, and music all drive an unending need for faster data networks—data networks that rely on your cell site to make it happen—but your rent is stuck with the same rate as fifteen to twenty-five years ago and not benefiting from the phenomena that makes the carriers billions in profit monthly.
Simple lease term such as annual escalations can affect your rent income by hundreds of thousands of dollars over the life of the lease if properly negotiated. Yet, this is often a missed opportunity for many wireless landlords as they do not realize the effect annual escalators have on the value of their rent streams.
Because so many factors are involved in determining lease rates, experience is what matters in determining fair market value of a given cell site location. Let us help you evaluate whether you are being compensated fairly for your property.