How Current Market Conditions Might Impact Cell Tower Leases

The cell phone industry is always in transition, with new technologies and company

mergers changing the face of the cell market. This often means good news for consumers,

but it can have a significantly different impact for cell tower landlords. There are several

key factors at play in the markets that can adversely affect the rates of cell tower leases,

and anyone who already has a lease or is considering leasing space for a cell tower should

take each factor into consideration.

Expanded Coverage

The top-tier cell phone service providers already have a wide coverage area throughout

the United States. While there are still some areas that have severely limited cell phone

coverage, these are areas that don't typically have a high demand for service. As the

coverage blanket expands, the price that providers are willing to pay for towers

decreases. This is the main reason why cell tower leases simply aren't worth what they

once were.

The Emergence of Small Cells

When cell phone companies build too many cell towers in a small area, there is a risk of

interference that can cause accessibility issues for consumers. The cost of building—and

leasing the property—for these towers can also be considerable. This is why many cell

providers are switching to small cells that can fit in the palm of a hand. While this

technology is cutting edge, it can cause a bit of panic for anyone who holds cell tower

leases. For a cell tower landlord who is concerned about risk management for the leases

in light of this new technology, selling cell tower lease agreements could become a viable

option for securing revenue.

Increased Demand

The news isn't all bad for cell tower landlords. The cell phone industry is booming, which

means that there is still a demand for new towers. More and more small companies are

emerging to offer better rates and options for consumers, and these companies need

towers too. While they may not be able to spend as much for cell tower leases as top-tier

cell phone companies, you may want to do some research into these other companies. If

their business models are sound and they show the promise of rapid expansion, you could

do well to sign a lease for a cell tower. You can always sell the lease to realize the full

value of the contract without having to worry if the company will still be around at the

end of the lease.

An analysis of the current market conditions for cell tower leases yields mixed results,

but it is important to remember that demand for cell phone service isn't going away any

time soon. There will always be a need for cell phone towers, and as a property owner,

you can fill that need. Be sure to stay on top of the news in this industry so you can

always know how your leases may be impacted. If the risk management aspect of being a

cell tower landlord makes you nervous, remember that you can always sell cell tower

lease agreements and get a lump sum payment with no risk. Wireless Capital Partners

offers this service and can help you get your payment quickly and easily.

Description: With the constant shifts in technology, becoming a cell tower landlord can

have its benefits and drawbacks. Aligning yourself with a company that can provide you

with a long term lease at an attractive rate can be a way that you hedge against the

constant changes in technology.

Bio: Wireless Capital Partners is able to help those who are looking for a long term cell

tower lease. They can provide you with a lump sum payment as opposed to a smaller

monthly lease payment. With lease terms of only 10 years, you can easily renegotiate

your lease terms down the road if prices for cell phone tower leases increase

dramatically.