Cell Phone Towers
Hi all! We have a building in downtown that currently has a cell tower on it. This has been leased to a company since 2000 and there is a long term lease agreement with adjusting rent every 5 years. I’m just looking to inquire about what would be considered a fair market price on the tower space. We feel like we are being a bit shortchanged but don’t really know what the comps are. The tower location is in Los Angeles near Korea-town. Does anyone have any input or thought to what the fair monthly rate would be?
[{"id": "gmvtsc6", "text": "Do you own the cell tower or does the lessee still own the tower and you're leasing the space the tower is on to the company?\n\nNot sure what the going rent is for anything in Los Angeles but that would likely affect the lease rate.", "replies": [{"id": "gmvv989", "text": "We own the building that the tower is on", "replies": [], "depth": 2}], "depth": 1}, {"id": "gmw09zw", "text": "Don\u2019t know market rates on LA cell towers.  But a few things:\nKnow whether it\u2019s exclusive rights to the roof. Can you add other cellular or other radio type stuff or WiFi devices to the roof?  \nIf the cell provider needs to add/upgrade service or power does that give you the right to renegotiate?  Think forward to 5G upgrades and that might be a trigger for you to edit the lease. \nUsually these long term leases tilt a lot of power towards the cellular lessee.  But think 2 moves ahead and what the documents might allow.", "replies": [], "depth": 1}, {"id": "gmwroa0", "text": "No personal experience but check https://www.cell-tower-leases.com/Cell-Tower-Lease-Rates.html and landmark dividend.com\n\n\nHere's some data on rents from department of general services of California \n https://www.dgs.ca.gov/RESD/Resources/Page-Content/Real-Estate-Services-Division-Resources-List-Folder/Telecom-Lease-Rate-Guideline", "replies": [], "depth": 1}, {"id": "gmwsf5a", "text": "These deals are always complicated, poorly documented, and almost always at the disadvantage to the LL.  The power they pull, the roofs they damage, the extra crap they put on that might have insurance implications...are almost never fairly compensated for.  Out of site, out of mind.  They went up so fast over the past couple decades, and are often in some sort of perpetuity/automatic renewals.... FREE MONEY for some blind owner years ago, but it's catching up now.  I'd care less about the comps before understanding the actual deal you have in place.  And expect a trail of lease assignments/transfers/etc that will absolutely leave you nobody to negotiate with, or be held accountable.  \n\nProbably not the answer you are looking for, and hopefully not your experience.  But if you're going down that rabbit hole, be prepared.", "replies": [], "depth": 1}]