Small Cell Lease Rates
Small Cell Lease Rates – How Do They Work? 5G?
What are small cell lease rates for private landlords? Fifth-generation (5G) wireless networks are the next wireless technologies being deployed. 5G will deliver faster speeds, more capacity, and an overall better end-user experience. 5G will be a paradigm shift in many ways delivering speeds of 100X those of the current 4G network.
While this all sounds great, 5G is getting a lot of pushback from the public as the legislation forced upon states and municipalities by the wireless industry is heavy-handed. streamlining the process is also the equivalent of highway robbery when it comes to the ridiculously low rents they are willing to pay.
In reality, 5G networks are being rolled out about as fast as a slug can sprint. And while there is legislation in place in 20+ states that streamlines the process for permitting and deployment, the public outcry has created some chaos, and therein lies the opportunity for landlords who may wish to get a 5G small cell site on their property.
While legislated small cell lease rates are very low and significantly below market value in the public right of ways, many more small cell 5G sites will be needed than can be deployed in right of ways, and private landlords who own residential and commercial rooftops that are 50’ in height and lower, including multi-unit residential properties and commercial buildings will likely be able to have a reasonable chance of having small cells installed on their rooftops or light posts or poles on their properties at some point in the next decade.
The small cell lease rates on private properties outside of the public right of ways will fluctuate from anywhere from $50 per month to about $500 per month. These are significantly less than what macro small sites pay. Small cell nodes need to be deployed every few hundred feet to improve capacity.
Not All Rooftop Small Cell Sites Are The Same
Recently in 2022, Tower Genius has seen several examples of Verizon Wireless small cell landlords in the New York City Metropolitan Area being approached by real estate consultants to modify their lease agreements for the carrier to upgrade and expand these 5G small cells. While that is great, when you go from 3 antennas to 9 antennas and you need extra rooftop space for telco cabinets, they are trying to convince you that the site in your building is a small cell. Let’s call it a turbo-charged small cell or better yet, a macro cell site. $1,000 per month rent is significantly less than what Verizon (or any carrier) rooftop cell sites pay anywhere in the New York City area. Let’s talk if you need help.
Listen To Steve Explain More In The Video Below