Rate and Financial Questions
1. Is the proposed rent at or above current market rate for my specific location and property type?
The only way to answer this is with verified current comparable transaction data. National averages are insufficient — you need your specific market, carrier, and property type. Get a free market assessment before signing.
2. What is the annual escalation rate, and is it at least 3%?
Market standard in 2026 is 3% annually or CPI-adjusted. Below 2% is significantly below market and compounds against you every year for the full lease term.
3. Is there a co-tenancy fee for additional carriers?
If a second carrier is added to the tower, you should receive additional rent. This provision is absent in many older leases and should be added in any new agreement.
Term and Structure Questions
4. What is the total potential term including all renewals?
Add the initial term plus all renewal options. Most standard leases total 25-30 years. Be cautious of structures that could lock you in much longer.
5. Are renewal options automatic (exercisable by carrier without your consent), or mutual?
Automatic renewals favor the carrier. Understand exactly how renewals work and when your next leverage point occurs.
6. What are the carrier's termination rights?
Can they exit with 30 days notice for any reason? Or are there meaningful constraints? Broad termination rights reduce your income security.
Equipment and Property Questions
7. Is the equipment precisely defined, or broadly described?
Vague definitions allow equipment expansion without additional compensation. Insist on a specific equipment exhibit.
8. Does the lease require equipment removal and site restoration at end?
This must be explicit. "Tower owner shall remove equipment" with a defined timeline and bonding requirement.
9. Is the leased area precisely defined in a site survey?
The lease should attach a survey or diagram defining exactly what land the carrier is using, including the access road.
Legal and Protection Questions
10. Who is the legal entity signing the lease, and is it financially stable?
The carrier or tower company name should be a real, financially stable entity with documented standing.
11. Does the carrier indemnify you for all claims arising from the tower and equipment?
Indemnification should be broad — not limited to negligence.
12. What are the carrier's insurance requirements?
Minimum $2-5M general liability with you named as additional insured.
13. If you have a mortgage, does your lender need to consent to or acknowledge the lease?
Many lenders require a non-disturbance agreement (SNDA) from the tower tenant. Proactively address this.
14. Does the lease restrict the carrier from assigning without your consent?
Unrestricted assignment allows the carrier to transfer your lease to any third party without your approval.
15. Does the lease contain a right of first refusal that affects buyout transactions?
Some leases give the carrier the right to match buyout offers for the lease income, which can complicate any future sale decision.
Ready to review a lease offer? We check all 15 of these questions as part of our free lease review. No obligation.
Free Pre-Signing Review