Independent Cell Tower Fees

Is there an industry standard for cell tower development and marketing fees for tenant leases and how are the fees generally paid? Over the term of the lease? Upfront? What if the lease is extended?

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Oct 25, 2010
Cell tower management marketing fees
by: Tower Genius

Do mean marketing fees for a company that is going to build a tower or just a property management company?

If it's a cell tower developer they are usually paid on whatever market rates will bear for the region that the property is located in.

Property Management firms are usually compensated between 15-50% depending on location and what the total value of the site is.

In our opinion it is best to partner with a property management firm and tie their compensation to the long-term value of the cell site lease including extensions. The problem with paying an up-front fee if you agree to pay 3 years of rental for example (because you hope to make more on the long-term) what happens if a carrier terminates a lease agreement or decides to relocate a site after the first term. You would have made a exuberant payment to the property management firm while only getting compensated for a small amount yourself. That is why it is best to have a long-term payment arrangement where the cell tower management firm only gets compensated after you your compensated.

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