The Cell Site Insights Podcast

Episode: Your No-BS Guide to Cell Tower Lease Renewals: How Not To Get Played By The Tower Companies

Tower companies are actively pushing lease renewals because they need your property for 5G upgrades and longer commitments to investors. Over 40% of all cell site leases contain errors, violations, or terms that could yield significantly more money.

Maximize Your Leverage You hold maximum leverage, or the "sweet spot," when your lease is within 5–15 years of expiration. Carriers will generally not lease tower space on ground leases with less than 15 years remaining, compelling the TowerCo to negotiate with you. If you have multiple tenants (2–3 carriers), you are sitting on a gold mine, as each tenant represents millions in revenue to the tower company. Threats of decommissioning are mostly bluffs, as tower removal costs $50,000–$100,000, and building a new tower costs $150,000 to $1 million+.

Key Negotiation Demands Do not sign anything—not a letter of intent or preliminary agreement—as signing immediately eliminates your leverage. Landlords must negotiate for:

1. Higher Base Rent: Renewals with strong leverage should command $1,000 to $6,000+ per month.
2. Better Escalators: Demand a minimum 3% annual increase. A 3% annual escalator can generate $126,132 more than a 2% annual rate over a 30-year lease. Never accept term escalators (e.g., 15% every 5 years).
3. Revenue Sharing: Insist on 10–20% revenue sharing on all sublease revenue from additional carriers. Without this, you could be leaving $180,000 to $270,000 or more on the table over 30 years.
4. Eliminate Poison Pills: Ensure the removal of restrictive clauses like Rights of First Refusal (ROFRs) and unlimited tenant termination rights.

Professional Expertise The Cell Site Insights is brought to you by Cell Site Appraiser (CSA), a wireless consulting firm specializing in appraising and negotiating cell tower leases. CSA works exclusively for cell site landlords, using their 30+ years of knowledge to increase cell tower value and protect property rights. CSA believes their knowledge is your power.

If you're a cell tower landlord, DO NOT AGREE TO SIGN anything unless you have CSA on your side. For more information, visit cellsiteappraiser.com or call 213-986-7620.

Would you like to explore the specific financial calculations that demonstrate how negotiating a 3% annual escalator yields over $126,000 more than a 2% annual rate over the lease term?

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