Answer
Nov 21, 2024 - 12:29 PM
Hello,
Thank you for reaching out. There is no standard lease rate for TV station ground leases. They are all over the place and should be. There are a multitude of factors that influence ground lease rates for TV broadcast towers. These include, but aren't limited to:
1. FCC Spacing Restrictions
2. Availability of land or more importantly other broadcast towers in the market (broadcasters have more flexilbity of how far they can move if there are no FCC spacing restriction issues)
3. Zoning restrictions
4. The market itself
5. Height and size of parcel
6. Cost of moving TV license and possibly the tower
Broadcast tower ground lease rates range from hundreds of dollars per month to ten thousand per month. However, broadcast terrestrial TV stations are no longer nearly as profitable as they once were. Additionally, there are situations where a station owner would prefer to consolidate with other stations/towers they own. However, they might not have done so because they had such a good ground lease. But if the lease rate is too high, it might push them the other way.
Unfortunately, this isn't a question that can or should be answered on a Q&A like this. These are complex valuations - and we typically work with a broadcast engineer to help us understand the unique value proposition (or not) of the subject property and tower.
Whether you engage Steel in the Air or another consultant with similar expertise, this isn't one I would leave to internet research. Please contact us if you would like to discuss in more detail.
Thanks
Ken
Add New Comment