what is the current market rate for cell tower leases in bergen county nj?

-town has strict zoning laws
In Leasing Property - Asked by Matt M. - Jul 9, 2010
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Answer(s)

Brad C.
Developer
Scottsdale, AZ

We're on the opposite side of the country but I thought that I might be able to provide some assistance. We live in north Scottsdale, AZ. with very tight zoning laws and median home values around $600k. Our HOA recently leased a tower site to T-Mobile for $600 month. T-Mobile paid for and installed the tower and equipment on the roof of our community center and complied with our requirements to construct the equipment within a faux chimney so that it is not visible from the street and blends in with the structure very nicely. Good luck!

Jul 12, 2010
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Rob B.
Chandler, AZ

LIke the previous answer I am located in other than NJ. However, our experience may be of interest. In a property we managed we leased a very small equipment room (about the size of a janitor closet) to Verizon, with equipment on top of a 3 story commercial building. $1400 per month and they pay like clockwork!
Rob Baird (CA RE License #544165 - One of the oldest active licenses in CA)
951 515-5855

Jul 14, 2010
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Rob B.
Chandler, AZ

As an addendum to my last answer, $1,400 mo x 12 = $16,800 NOI. At an 8% cap rate this adds $210,000 in value to the building.
Rob Baird (CA RE License #544165 - One of the oldest active licenses in CA)
951 515-5855

Jul 14, 2010
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Sean D.
San Diego, CA

Rob is wrong. It doesn't add value to the building because cell site leases are nothing like commercial leases and the net operating income does not include things like new roof, personal property, mortgage payments, income & cap gains, loan fees. NOI is irrelevant to the valuation of a tower lease entirely dependent on a lease that contains 30 day termination language due to Alcatel-Lucent claiming they can eliminate up to 80% of tower and rooftop cell antennas. Rob's "oldest active licesne" and the lack of education regarding the tech evolution is glaringly obvious here. Try some due diligence, Rob.

Sep 13, 2013
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