- Q: What is a cell tower lease?
A: It’s a contract letting a wireless tenant place equipment on your land or building for rent. You grant limited space, access, and utility rights while keeping ownership. - Q: What does the tenant actually build?
A: Typically a small compound with a tower or mounts, cabinets, power, and backhaul. The footprint is modest, but the rights can be broad if you’re not careful. - Q: Why do tenants choose certain parcels?
A: Network gaps, elevation, and logistics drive the choice. If your site is the practical fix, your leverage improves. - Q: Is the lease for land or space?
A: It can be either. Ground leases cover compounds and towers; rooftop agreements cover mounts and equipment rooms. - Q: How long does it take from offer to on-air?
A: Anywhere from months to longer, depending on permits, utilities, and construction. The lease should set milestones so rent doesn’t drift. - Q: Do I need my own expert?
A: If the stakes are meaningful, yes. Lease templates are written to protect the tenant’s interests, not yours. A little expertise avoids expensive edits later. - Q: Are cell tower leases standard?
A: Only for the party who wrote the template. Markets, sites, and property constraints vary, so you should tailor the agreement to your specific situation. - Q: What documents matter most?
A: The lease, exhibits (site plan, access, utilities), insurance certificates, and payment schedules. Clean paperwork ensures you are paid on time and helps avoid disputes. - Q: What are the biggest early pitfalls?
A: Undefined access routes, vague utility paths, and open-ended equipment rights. These items can cost you more than they appear to. - Q: How is rent determined?
A: Rent is based on network need, the scarcity of alternatives, elevation, and permitting difficulty. Rents commonly range from hundreds to several thousand dollars per month. - Q: Do urban sites always pay more than rural?
A: Often, but not always. A difficult coverage gap in a rural area with few substitutes can command a higher price than a typical suburban site. - Q: What pushes rent to the high end of ranges?
A: Scarcity, tough zoning, clean elevation, and fast logistics. When replacing your site is slow or costly for the tenant, the rental value rises. - Q: What pulls rent down?
A: Plenty of substitute properties, easy permitting, and weak elevation. If they can replace your property quickly, expect standard economic terms. - Q: Are rooftop economics different from ground sites?
A: Rooftops trade space for height, while ground sites trade height for more infrastructure. The value is determined by how well the site fits the network plan, not whether it is a rooftop or ground lease. - Q: Do bonuses make up for low rent?
A: One-time payments feel good, but rent escalations and long-term control drive the lifetime value of the lease. Don’t trade future growth for a signing bonus. - Q: Does revenue sharing matter?
A: If the tower can host multiple users, a revenue-sharing clause converts that extra intensity into more income for you. Without it, the tenant captures all the upside. - Q: How do backhaul and power affect rent?
A: Short, clear utility paths reduce the tenant’s cost and risk, which supports firmer rent. Vague or long routes push the numbers down. - Q: How long are leases?
A: Commonly an initial 5–10 years with multiple renewals that can span several decades. A long term without rent growth will underpay you over time. - Q: When should I start renewal planning?
A: A year or two before any option or expiration date. Early preparation lets you benchmark rent, audit payments, and set a clear timeline. - Q: Should I accept automatic tenant renewals?
A: Only if the rent resets fairly. Auto-renewing at old rates compounds your losses. Treat renewals as fresh decision points where value is recalibrated. - Q: Is a shorter term with frequent resets better?
A: Often, yes. More checkpoints let the rent track with market reality. If you accept a long duration, secure stronger escalations or mid-term rent resets. - Q: What about termination rights?
A: A tenant’s unilateral right to terminate weakens the lease’s value. Tighten notice periods, add a cure period, and consider a fee for early termination. - Q: Do extensions change the base rent?
A: They should. Renewals are the time to align rent with current value and confirm escalations. Carrying old math forward is how value is lost. - Q: Can I set performance milestones?
A: Yes. You can tie the rent start date to permits or construction progress, not just when the site is “on-air.” Clear milestones prevent delays. - Q: What access rights do tenants need?
A: They need reliable access for construction and maintenance, with emergency access available at all times. Routine work should follow agreed-upon time windows. - Q: Who pays for utilities?
A: Tenants should have dedicated meters and pay for their own usage. Shared circuits often create disputes. - Q: Can tenants assign the lease?
A: You should allow reasonable assignments with notice and an assumption of obligations. Retain consent rights for transfers to parties that lack experience or credit. - Q: Should tenants restore the site after removal?
A: Yes. The lease should require them to return surfaces to equal or better condition and remove abandoned equipment. - Q: Do tenants carry insurance?
A: Yes. They should have commercial liability and property coverage at appropriate limits, naming you as an additional insured. - Q: What are my core obligations as a landlord?
A: Your job is to provide the agreed-upon space, access, and utility corridors, and to keep common areas safe. Keep your duties specific and enforceable. - Q: Should I keep detailed records?
A: Yes. Keep leases, amendments, insurance certificates, payment logs, and as-built drawings. Organized files defend your rent, speed up renewals, and support valuations. - Q: Should I require bonds or deposits?
A: For complex construction, a modest security deposit or performance bond can ensure compliance. Use it as insurance for good behavior, not a revenue source. - Q: Why do escalations matter so much?
A: They compound over time and protect your buying power. Weak escalations drag down the lease’s value over decades. - Q: Fixed escalators or CPI—what’s smarter?
A: Fixed bumps offer predictability; the Consumer Price Index (CPI) hedges against inflation. A hybrid (e.g., “the greater of the two”) can balance both in long-term leases. - Q: How should access be documented?
A: Draw it on a map. A map is better than a paragraph. Define routes, hours, notice requirements, and emergency procedures so operations stay predictable. - Q: Can I require escorts for roof or secure areas?
A: Yes, if it’s reasonable and consistently applied. Balance your safety needs with practicality, and put any fees and scheduling rules in writing. - Q: Do I need temporary relocation rights for my own projects?
A: If you expect to do renovations, yes. Reserve the right to relocate the equipment at the tenant’s cost with reasonable notice. - Q: What is a lease buyout?
A: It is a lump-sum payment in exchange for some or all of your future rent stream and certain lease rights. It’s trading a long-term income stream for a single check. - Q: How do I compare a buyout to keeping the rent?
A: Model the after-tax rent with escalations over a realistic timeframe and compare it to the lump-sum offer. If the check doesn’t compete, keep the income. - Q: Should I record the whole lease in public records?
A: No. Record a narrow memorandum of lease with precise legal descriptions and term limits. Recording the full lease can give away leverage. - Q: How do I prevent permanent rights from being created?
A: Reject blanket easements and tie any recorded rights to the lease term. If the rent stops, the rights should stop. This keeps your future redevelopment options open. - Q: What’s the big picture for owners?
A: You are trading a small footprint on your property for a steady income. Protect the growth (escalations), control (rights), and clarity (exhibits).
