A telecommunications lease is unlike any other real estate lease. It is a lease between a telecommunications company (such as AT&T, Verizon, or Sprint) and a property owner. The primary reason telecommunications companies request to lease property from property owners, is to install an unmanned telecommunications facility (also known as a cell tower or cell site). The property owner agrees to lease a specific area on the property to the telecommunications company for a specific amount of time (also known as the term), and in exchange receives rent from the telecommunications company.
Types of Telecommunication Leases
1. Rooftop Leases
In more urban markets, and markets where it is more difficult to construct tall cell towers, rooftop telecommunications leases are a great solution. The property owner agrees to lease space on their roof, or building façade, and antennas are typically attached to the building façade, or to a platform constructed on the roof.
Rooftop telecommunications leases have many pros and cons (which we cannot all cover in this one post). Here are some other articles you may find of interest regarding Rooftop Leases.
Rooftop Cell Site Upgrades, 3 Tips
How Rooftop Cell Site Management Benefits You
3 Hotel Rooftop Cell Site Lease Tips
If you have been contacted to lease space on your roof, it is a good idea to contact a cell tower lease expert such as Airwave Advisors, to fully understand the benefits and pitfalls.
2. Ground Leases
The most popular telecommunications lease is a ground lease. With a ground lease, the telecommunications company agrees to lease an area of land from the property owner in order to construct a cell tower. Ground leases, like rooftop leases, also come with pros and cons. The biggest concerns when entering into a long term ground lease are (i) will you be receiving market rent with a market rent escalator?; and (ii) are there any plans to redevelop your property in future, where the proposed tower cell tower may prevent you from freely doing so?
It is important for you to remember that telecommunications ground leases are typically for 30 years in length. Once the telecommunications lease is signed, you will likely not have the ability to renegotiate the lease for decades into the future.
Make sure you are not leaving money on the table – have your telecommunications lease reviewed by Airwave Advisors today, prior to signing.
Understanding The Value Of Your Telecommunications Lease
A telecommunications company will look at every property with a different value, because every property is unique. The frightening fact for property owners to understand is that over 90% of telecommunications leases are paying below market rent. This accounts for billions of dollars of rent that was left on the table, by property owners, in negotiations across the country.
Airwave Advisors has an exceptional track record of securing the highest rents with the best terms in telecommunications leases. We have been tracking the telecommunications lease market for years, so that you don’t have to. Are you looking to maximize your telecommunications lease opportunity?
Call Us Today
(888) 443-5101
Posts That May Interest You
Related Articles
4 Comments
Leave a Comment
About Nick G. Foster
Since founding Airwave Advisors® in 2014, Mr. Foster has added value to over 400 clients ranging from the State of Nevada, City of Beverly Hills, to Habitat For Humanity. Mr. Foster focuses on cell tower lease renewals, buyouts, new lease negotiation, and cell site lease management. Prior to starting Airwave Advisors® Mr. Foster founded and led the Cell Site Services Group within nationwide commercial real estate services leader Cassidy Turley (now known as Cushman & Wakefield).
we were approached to have our property leased for 10 years by telecom for a generator installed on property. is this safe? what are the rates for a generator, not a tower?
Hi Wayne,
Thank you for reaching out. Land lease rates for a generator are different from that of a cell tower lease. Specifically, generator lease areas are smaller than the footprint for an entire telecommunications facility. If you would like to discuss numbers, please give me a call at (888) 443-5101.
All the best,
Nick G. Foster
My husband just inherited 1.6 acres in the Ozark Mtns Newton County, Arkansas. While it’s not the highest point in the area or Arkansas, it is 2014 ft. to over 2100 ft..
What are is your service rates?
Thank you,
Rebecca Burdine
Hi Rebecca,
Thank you for your inquiry. If you are looking to have a cell tower installed on your family’s land, please review this article “How Do I Get A Cell Tower?”.
All the best,
Nick Foster