For the last 25 years, the cellular industry has experienced rapid, nearly exponential growth. Cell phones have transitioned from expensive communication devices to a cheap and common commodity. The foundation of cell phones – they won’t work without it – is the cellular network. For over two decades, cellular networks have constructed cell towers and cell sites at an incredibly rapid pace to meet demand. Today, with changes in cellular technology, cellular networks are now trying to reorganize the leases of many of their cell sites and cell towers.

Back in the day when cellphone technology was just starting to make a name for itself, much of the hoopla was focused on erecting networks as quickly as possible. This happened in the late 80s and early 90s, fondly referred to as “the first and second generations” of cellular technology. It was during these times that “prime” locations of cell sites were considered to be of utmost importance. A number of properties and buildings offered “perfect” areas for coverage, and networks often paid excessive amounts of money for these “prime” and “perfect” locations.

How times have changed.

Today’s third generation cell phones operate completely different than the first and second generation of just a few years ago. Older cellular networks were far less sophisticated than today’s networks, and they required higher antenna sites to cover more area. Today’s networks?not so much. Today, carriers need more sites closer to the ground that are operating with greater bandwidth. The closer to the ground, the more locations to choose from.

Because of this positive change in technology, networks no longer need to concentrate on finding the so-called “ideal” areas for cell sites and cell towers.

While consumers have benefited from these advances in cell phones and cell towers, there has been a great decline in the amount of rent seen by many property owners with cell site leases. Cellular networks are now checking on each and every lease, and since many of these leases were signed back when the technology was very much different from it is today, they’re often requesting a rent reduction or moving elsewhere. At the same time, these same advances in technology have also led to more competition for cell site leases. Since there’s no such thing as a “prime” spot any more, plenty of property owners are offering low rental rates to attract high credit cellular network leases.

Advances in cellular technology in the last 25 years has been magnanimous, and the industry is still aggressively advancing. The physical needs for a cell site have changed, and cell tower leases are now being renegotiated. A good number of the property owners aren’t quite happy about renegotiated leases and the lowering of their cell site and cell tower rents, but consumers – and even the entire country – are enjoying the benefits of improved performance, service, and the stability of wireless networks. It’s not all gloom and doom as far as landlords are concerned, however. As part of a cell site lease renegotiation, many landlords are able to secure a long-term rent guarantee. Since cellular operators are also one of the best clients a landlord can have, a long-term arrangement is often considered “money in the bank.” Still, technology and market forces are conspiring to force property owners to be more competitive in order to retain their tenants. Such is the march of capitalism.