I have a friend with a tower in another state and he is getting 3 times more monthly revenue that I am getting for my lease. Why is that?

Lease rates are dependent upon many factors. Some carriers or tower companies pay more than others do from the get go. Zoning regulations affect lease rates (and vary from one municipality to another). The current economic climate is also a factor, as is the longevity of the lease (eg. a 50 year lease is more valuable than a 20 year lease). The number of carriers using the cell site will also contribute to the net rental payment. But the most important factor of all is the “uniqueness” factor. This is calculated by evaluating whether or not there is comparable land (competition) nearby which could accommodate the carrier/ tower company just as easily. The uniqueness factor also considers the proximity of your land to other cell sites. When carriers first search for land on which to build cell sites, they utilize a “search ring” – an area within which boundaries cellular signals can effectively be handed off to the next tower. Better positioned lands affect the final value of the lease, and contrary, to what most people think, the best land isn’t necessarily the highest. In addition to all the factors above, the type and terms of the lease are also considered when calculating its total value.

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