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Cell Tower On Large Land Tract

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Terrel L. Shields

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May 2, 2002
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Certified General Appraiser
State
Arkansas
Got a farm with large site, grazing land and some woodlot. There is a cell tower on it. Lease of $350/month, 20 year contract, in year 5. Doesn't interfere with utility as grazing, is small footprint (about 200 SF) and doesn't impact HBU.

So what is its contributory value to the land (~ $4,000/acre land)? Is it an intangible interest? Does the income accrue to the land? Or would you treat it separately as an intangible interest?
 

Meandering

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Feb 26, 2006
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Check to see who has the FCC license for the tower.

If it's the land owner, the leases and income are very different than if the FCC license is owned by a cell company who is subletting space on the tower.

The FCC list of licenses should be available online, to look up by name.

These things get trickier every year with the leases.

Contribution to the land is the income stream, until the tower is technically obsolete. The leases should spell out who is responsible for removal and/or replacement of the tower.

.
 

AMF13

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Jan 24, 2002
Professional Status
Certified Residential Appraiser
State
California
Beyond my pay grade. But it sounds like a test, so...
Seems like the main thing is the present value of the income stream @ $350 a month.
 

gregb

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Sep 3, 2011
Professional Status
Certified General Appraiser
State
California
One local developer sold both a lot attached to a lot with a house, with a cell tower on the otherwise vacant lot. Developer retained the right to the cell tower lease income, and the buyer was burdened with allowing access to the cell cite for maintenance without receiving any income from the cell tower lease.
 

Meandering

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Pennsylvania
When the land owner owns the FCC license for the tower, those leases can be substantial income.

.
 

Meandering

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Feb 26, 2006
Professional Status
Real Estate Agent or Broker
State
Pennsylvania
That bit does not sound like real estate. :shrug:

:ROFLMAO:

It is the only use of a cell tower.

:coolsmiley:

Cell towers aren't bi-levels.

And it's really hard to hang your laundry out to dry on them.

.

.
 

gregb

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Sep 3, 2011
Professional Status
Certified General Appraiser
State
California
Wondering if it would be a "contingent appraisal fee" for an appraiser to take the appraisal fee as the lease income from a cell tower lease, either on or off the property the appraiser is appraising? :)
 
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