Vertical real estate market?

[Keith_Lake]

Is the boom in vertical real estate past?

I know of two former TV masts in the area. One is disassembled and on the ground, the other is still standing next to its DTV replacement awaiting money to take it down. Both are approximately 1500 feet.

I have often considered the idea of putting up a plain stick, running proper 3-phase power to the site, placing sturdy transmitter enclosures at the base, and putting out word that it is available. Would there be enough potential business from FM translators and low-power TV, for example, to make it a worthwhile venture? Or would those folks prefer owning their own towers?

I am located in the geographic center of market #87, and I've heard it said that all desirable towers in the area are loaded to capacity and not accepting new tenants. Only one of the 100-kw FMs in this market has a backup site. The rest can't find room on another tower for an auxiliary antenna. And of course there's always cellular phone companies and VHF repeaters.

This will undoubtedly be a major-money venture, but I'm wondering what sort of a return I can expect on the investment. I don't want to end up with a 1500-foot lightning rod.

Please understand I'm just blue-skying here- no committments have been made to anyone yet- but I would like to hear from persons who are already in the tower-space-rental business. If this is an unworkable scenario, then so be it.
On the other hand, if the idea has merit, let's talk.

KL

<P ID="signature">______________
<a href="http://home.nc.rr.com/gttyson/lastradio.html">The Last Radio Station<a></P>

 

[MattB]

I build cell towers all day long. Vertical real estate is booming right now. But there are a few things to keep in mind.

1) The only way you will get local zoning approvals is to have a licenced tenant ready to go on the tower.

2) The neighbors don't complain and cause you problems.

3) You have the $$ to do it. It costs me about $225k to build a 150' tower. I can only imagine what it will cost to build something at a height a TV station will need (1500'??)



> Is the boom in vertical real estate past?
>
> I know of two former TV masts in the area. One is
> disassembled and on the ground, the other is still standing
> next to its DTV replacement awaiting money to take it down.
> Both are approximately 1500 feet.
>
> I have often considered the idea of putting up a plain
> stick, running proper 3-phase power to the site, placing
> sturdy transmitter enclosures at the base, and putting out
> word that it is available. Would there be enough potential
> business from FM translators and low-power TV, for example,
> to make it a worthwhile venture? Or would those folks
> prefer owning their own towers?
>
> I am located in the geographic center of market #87, and
> I've heard it said that all desirable towers in the area are
> loaded to capacity and not accepting new tenants. Only one
> of the 100-kw FMs in this market has a backup site. The
> rest can't find room on another tower for an auxiliary
> antenna. And of course there's always cellular phone
> companies and VHF repeaters.
>
> This will undoubtedly be a major-money venture, but I'm
> wondering what sort of a return I can expect on the
> investment. I don't want to end up with a 1500-foot
> lightning rod.
>
> Please understand I'm just blue-skying here- no
> committments have been made to anyone yet- but I would
> like to hear from persons who are already in the
> tower-space-rental business. If this is an unworkable
> scenario, then so be it.
> On the other hand, if the idea has merit, let's talk.
>
> KL
>
<P ID="signature">______________

njrm.org - The New Jersey Radio Museum
</P>

 

[CW]

> Is the boom in vertical real estate past?
>
> I know of two former TV masts in the area. One is
> disassembled and on the ground, the other is still standing
> next to its DTV replacement awaiting money to take it down.
> Both are approximately 1500 feet.
>
> I have often considered the idea of putting up a plain
> stick, running proper 3-phase power to the site, placing
> sturdy transmitter enclosures at the base, and putting out
> word that it is available. Would there be enough potential
> business from FM translators and low-power TV, for example,
> to make it a worthwhile venture? Or would those folks
> prefer owning their own towers?

Possibly depending on whether there is demand for additional tower space..
Will the current FMs, etc want backups? Are there any translators looking for a tower in the area? How many LPTVs have CPs for that location? (remember moving a site is not easy in some cases...if there is a site restriction, it may be impossible).

>
> I am located in the geographic center of market #87, and
> I've heard it said that all desirable towers in the area are
> loaded to capacity and not accepting new tenants. Only one
> of the 100-kw FMs in this market has a backup site. The
> rest can't find room on another tower for an auxiliary
> antenna. And of course there's always cellular phone
> companies and VHF repeaters.

Cell phone companies like to stay on short towers (and they are easy to find..)
Repeaters (commercial) are going away in most markets...some of the rental towers in my areas that USED to be loaded to the max are almost empty now..
pagers are dead and passe, repeaters have been replaced by cell phone...the only folks looking for tall vertical space are private systems (like utilities or public safety) or hams...and the hams are cheap, wanting free or low cost rent...in some cases, you get a professional group who will take care of the site and maintain certain things for free...in other cases, you get a ham group who (like one I know) gives joy rides up the tall tower and then breaks the elevator just before it is needed for real tower work! (That happened to me at one site...my tower crew could not take the elevator up because the infamous POS ham group had broke the elevator the week before)...but if you want income, dont count on the ham groups...and the lack of commercial systems nowadays wont help (only in the rural areas are the repeaters still viable)

> This will undoubtedly be a major-money venture, but I'm
> wondering what sort of a return I can expect on the
> investment. I don't want to end up with a 1500-foot
> lightning rod.

In Market 87, you SHOULD be able to do something...do an initial inquiry to prospective tenants...see if they are interested...and make the price reasonable...if you get a number of FM clients, consider looking at spending the capital for a master antenna and have the clients put their own combiners in..you can put more clients on the tower that way...which of course equals more income.

 

[tpt]

"Cell" phones systems work because the area to be served is broken up into --
ta-da "cells" with each tower having a limited coverage area.

In the early days, towers or sites for rent were more valuable because of rampant nmby'ism. Now most cell companies have the capital, pull and connections to get small sites where they want them, & drop in cookie-cutter sites consisting of a relatively short self-supporter & candalabra-style antenna system up top.

They may still bite on an indepenedtly owned tower, but only because of three points: Location, Location, and Location. Such as the confluence of two major freeways where they don't have good coverage. The new frontier will be building-top sites for PCS. Here in my small college town there are three PCS sites within 2 blocks in the center of town--one on the stairway penthouse of the parking garage, one on a 6 story building, & another on a tower on top of a 3 story building.

Another factor to consider is that we will probably see a rapid consolidation of cell phone companies. Fewer companies = asurplus of towers.

As mentioned above, other services are going away. WiFi is a new source of tenants, but not necessarily a lucrative one.

Translators: I have 5 through two companies. My general approach to translator placement is that the ideal site is where you can see everyone in town with a good pair of binolculars. Wouldn't pay that much for it, however. With coverage limited (in the east) to about 200 ft AHAAT with 250 watts, a top of a building in-town is more valuable than a big stick way out in the boonies.

As to building a "spec" tower for a TV tenant, I doubt it. Unless you have just the "right" piece of land (out of flight paths, inside open areas & you have at least one station breaking down your door to build the tower)I can't see it working.