Cell Tower Leases: An Overview

Demand for cellular services remains high. In the U.S. alone, about 91% of adult Americans reportedly own cell phones and smart phones. As mobile subscribers clamor for faster and better voice and data services, wireless carriers must in turn respond by building more cellular sites or towers, particularly in highly populated areas. This ensures that cellular signals remain strong and reliable.

Cell sites, also referred to as base stations, consist of transmitters and receivers that relay signals to and from mobile network operators and mobile devices. Rather than purchase lots, however, wireless carriers enter leasing agreements with landowners for the rights to set up cell sites, whether from the ground up or on existing structures. In many instances, cell sites may be disguised as church steeples, water tanks, or even trees to avoid disrupting the local landscape.

So-called cell site investors can help find leads for cell tower development projects and negotiating agreements between individual landowners and wireless carriers. A lot of times, these investors also buy existing leases between landowners and carriers in exchange for sizeable lump sums.

In any cell tower lease, both parties must come to an agreement as regards usage and access to the property. As most agreements between lessor and lessee are legally binding, it is common courtesy to follow through on what was discussed during the negotiations.