Ground Lease Basics
A ground lease is a type of real estate lease in which the tenant leases land (not a building) and has the right to construct improvements on that land. In cell tower ground leases, the "improvements" are the cell tower infrastructure — the steel monopole or lattice tower, equipment shelter, fencing, and access road.
The key characteristic: the tower belongs to the carrier or tower company, not to you. You own the land; they own the structure. When the lease ends (or when they choose not to renew), they are typically obligated to remove the tower and restore your property.
Who Might Have a Ground Lease
Cell tower ground leases are most common on: agricultural and rural land with unobstructed views; suburban commercial parcels; church and institutional properties; industrial and warehouse properties; residential properties large enough to accommodate setback requirements; and public land (municipal properties, schools, parks).
How a Ground Lease Is Structured
Leased area. Typically 2,500-5,000 square feet for the tower and equipment shelter, plus an access easement to the public road. The leased area is a small portion of your overall property.
Term. Usually a 5-year initial term with four to five automatic 5-year renewal options, giving the carrier 25-30 years of potential occupancy. The carrier typically exercises renewals at their sole discretion.
Rent. Monthly payments from the carrier or tower company. Rent ranges from approximately $200/month in rural markets to $8,500+/month in dense urban markets depending on location and carrier.
Escalation. Annual rent increases, ideally 3% per year or CPI-adjusted. Older leases often have 1.5-2% escalation, which is below the market standard and below long-term inflation.
Co-tenancy. Market-standard leases include additional rent when a second carrier is added to the tower. Many older leases lack this provision.
What Ground Lease Owners Should Know
Ground leases give the carrier very broad rights over a small portion of your property for a very long time. Your monthly rent is the primary return on this commitment. Ensuring that rent is at market level — and growing at market-standard escalation — is the most important financial decision most ground lease owners make.
Have a cell tower ground lease? A free review shows you where your rent stands relative to current market rates.
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