Cell tower ground leases are a popular topic because of the significant amount of money involved. They can range from $500,000 to over $1 million per year, and contracts can be for 20 years or more. Cell Tower Ground Lease agreements allow cell phone companies to place towers on land owned by the property owner in exchange for a monthly fee.
Cell towers generate a lot of revenue for telecommunications companies and landlords alike, so you should know what they are and why they’re in place before signing one with your landlord. Cell tower ground leases can be confusing, but this article will break down three major points about them that’ll help clarify any confusion you may have!
1) Cell tower ground leases often specify who is responsible for maintenance costs – the tenant or the building owner? That’s up to both parties to decide when negotiating the lease agreement.
2) Cell towers don’t require much space because their equipment is collapsible; it’s possible for a cell tower company to take over less than ten feet of a building’s space. Cell tower ground leases often specify how the building owner will ensure that a cell tower company has enough space to assemble and disassemble their equipment from day-to-day operations.
3) Cell tower ground leases can be long-term in duration, usually for around 25 years or more. It can also be leased for shorter periods of time, if necessary.
If you have land and it can be used for a cell tower, read the contract very well and ask all the questions you need.
