Antenna Management Corp. is proud to announce a Rent Index map for Canada cell sites. Owners with cell sites are frequently frustrated by the lack of information for rents paid on cell sites. Landlords are used to rent comparisons on most other types of properties – office, residential, retail etc. because they are readily available. But when it comes to cell sites – they are in the dark. Little independent cell rate information is available in Canada for owners to estimate rents.
Why are there no rent comparables or Rent Index maps available? Why do registered leases not include the market rents? Most carriers prefer to negotiate rents with owners that lack the comparable rents that they possess. This puts landlords in a distinct disadvantage.
To address this on behalf of our clients, AMC has developed a new cell site Rent Index map for cell site landlords. This map contains key information of cell sites in Canada including:
- Site Code
- Licensed Transponders (Antennas)
- Rent Index
Each Canadian cell site is identified by Carrier, Lat/long and Site Code. The number of Licensed Transponders (antennas) describes the licensed antennas installed. AMC focuses on the active antennas operating – not the antenna packaging (antenna panels). Each antenna panel can have 1 to 6 licensed antennas (Transponders). The revenue capacity of a panel can increase 10 times without obvious changes. As cell antenna agreements often require the landlord to approve these “enhancements”, rental improvements may have been missed.
The Rent Index is a unique tool for measuring the licensed revenue capacity of any site with the same carrier. This is the first time such a tool has been made available to landlords with cell sites. The RI may also be applied on a national basis for all sites with same carrier.
AMC suggests starting by exploring a site and then comparing its RI with adjacent and local sites. The importance of any given site is reflected in the RI score. The higher the RI, then generally the greater the value of the site to the cell carrier. Another advantage of the RI index is that it can be used nationally to compare site installed potential for each carrier – coast -to-coast.
The rents actually being paid on sites in different regions can vary considerably. A key factor seems to be information available to the landlord and the landlord’s business. If they are in the specific business of being a landlord with other types of tenants – they usually obtain much better rents. If they also have rent comparables – they get better rents – especially the 5 year term increases above inflation rates. This provides for significantly more rent over the terms of the lease. Actual rent per site also varies with factors including type of site, carrier, length of term left, co-locations, RRU, microwave antennas, local development, advisers, access, type of landlord, timing and location. A cell site audit can quickly establish appropriate market rents.
The RI also is useful for comparing all types of cell antenna agreements – SROW, Leases, Licenses, sub-licenses, easements and Sub-leases. The revenue potential for all site types is integrated into the Rent Index.
Another challenge for landlords are situations where one carrier is providing licensed transponders for the use of other carriers not licensed on a site. Some Rogers sites provide access for FIDO – a subsidiary licensed carrier. Telus sites provide access in Western Canada to Bell and Bell provides access to Telus in the East. In most cases, landlords do not receive full or any compensation for these additional carriers. The RI includes additional carriers in its calculations and provides the landlord with a better indicator of total site installed revenue potential.
This Rent Index map site should be used for illustrative and discussion purposes only. AMC does not guarantee data and any results based on use of this map and its information need to be taken in conjunction with specific consultations and site audits with AMC.