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What is a Cell Tower Lease Agreement?

Wireless carriers are in the business of providing cellular service to their customers, and like any other business, their goal is to achieve a profit by providing the best possible service to the largest number of people. In order to remain competitive, carriers must invest in the discovery and acquisition of new cell sites and cell towers. Wireless carriers and/ or cell tower companies typically own the infrastructure upon which wireless equipment is placed. However, the land beneath the cell tower is owned by and leased from a landlord, which is typically a private property owner or government entity, such as a county or public works department.

Site acquisition agents are charged with finding the most suitable candidates (potential cell sites), as quickly as possible. Once several viable options have been scouted, agents will contact the property owner with an initial lease rate offer (and other terms), which can range from a few hundred dollars to thousands or more per month. After a verbal agreement is made, a formal agreement is drafted and signed.

While time is of the essence when it comes to Cell Tower Lease Agreements, we can’t emphasize enough how important it is to contact a reputable cell tower lease expert before signing anything – and that includes “simple” Lease Extension Amendments as well. Recall that while there are average lease rates for a given set of variables (like location, type of tower and identity of carrier) there is no standard cell tower lease rate, and the difference in value from one cell tower to another can be drastic. If you received a vague business proposal, you wouldn’t jump into it blindly would you? You’d seek an expert opinion from someone who has your best interest at heart.

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