Estimating the cost to construct new towers (monopole, lattice, and guide) of the same functionality can help build fair values for your network assets across geographies. CQA creates replacement cost new models, where possible, to generate alternatives to book values. These models not only satisfy transfer tax and asset allocation jurisdictional requirements, they can be incorporated into USPAP-compliant reports by our ASA appraisers. We’ve valued networks all over the U.S. and have network experts on staff to build your model.
Why fair market value for cell towers matter
Our goal in the valuation process is to produce a well-documented and supportable opinion of value that shows that an appraiser has considered all factors that affect the value of the assets being appraised.
Full ASA Appraisal
We work with you from start to finish to build a USPAP compliant report and can testify if needed.
We join your existing team to build part of the appraisal report.
The cost approach, commonly used by appraisers to assess the fair market value of property, comes in two variations: reproduction cost and replacement cost. In both scenarios, an appraiser starts with a value, then deducts for the loss in value caused by physical deterioration, functional obsolescence, and external obsolescence.
We specialize in the replacement cost new approach
Where the reproduction cost new is the cost of constructing an exact replica of the property at current prices with the same or closely related materials, the replacement cost new is the cost of a new property with similar functional utility. The replacement cost new tends to be the proper starting point for developing the value of a cell tower site because it’s often more practical to replace property than to build an exact replica.
Benefits of the replacement cost new approach
Eliminate Ghose Assets
Capture the Impact of Upgrades
Site Optimization Changes its Cost
Excess Costs Can Be Removed
Factors that Influence Cell Tower Valuation
The CQA replacement cost new (RCN) models account for the requirements to support tenants, location parameters, and design rules to assemble the site equipment and materials necessary to deliver services of equivalent utility within the tower owner’s network but excludes those assets owned by tenants at the site. The main factors that influence the model output can be categorized as location parameters and site component parameters.
Location parameters that impact cell tower valuation
The location of a tower site is a critical factor in the determination of certain conditions and costs that are attributable to the site valuation.
Tower sites are distinguished by structure type (e.g., monopoles, self-support or ‘lattice’, and guyed) and RCN models need to reflect the specific structure type currently at each location.
The height of a tower is a key site element and has a significant impact on site design and cost. The CQA RCN valuation model can be applied to a wide range of tower heights from 50 to more than 1,000 feet.
We have developed a great partnership with CostQuest Associates and their dedication to detail is evident in their appraisal reports. They are the industry experts in telecommunications with a staff that is knowledgeable and professional. CostQuest has a proven track record of success that has met our expectations.Charles W. Elms Jr. | AVP Indirect Tax – Frontier Communications
Partnering with CostQuest to understand and quantify the impact of technology changes has allowed our department to add significant value to our company initiatives. Their technical knowledge and comprehensive RCN modeling is second to none and made them the obvious choice.Pamela W. | Executive Director – Property Tax, Comcast Corporation