Ground Leases: The Traditional Cell Tower
A ground lease is an agreement in which a property owner leases a portion of their land to a carrier or tower company, which then constructs a cell tower on that land. The tower infrastructure - the steel structure, equipment shelter, fencing, and antennas - belongs to the tenant, while the land belongs to you.
What property types get ground leases: Agricultural land, commercial parcels, residential lots with sufficient setback, church properties with land, school grounds, municipal properties. The ideal ground lease site has unobstructed vertical access and proximity to carrier coverage needs.
Typical ground lease economics (2026):
- Rural markets: $300-$1,400/month
- Suburban markets: $600-$2,500/month
- Major metro markets: $1,200-$6,500/month
- Dense urban markets (NYC, LA, SF): $2,000-$8,500+/month
Typical ground lease terms: 5-year initial term with four to five 5-year automatic renewal options (totaling 25-30 years). Annual escalation of 2-3%. Carrier has broad rights to access the leased area for construction and maintenance.
Key considerations for ground lease owners: Ensure equipment removal obligations are clear and enforceable. Negotiate co-tenancy fees for additional carriers. Understand the access road provisions if a dedicated access way is required. Review indemnification for environmental liability if generators with fuel storage are present.
Rooftop Leases: Urban Building Access
A rooftop lease grants a carrier or tower company the right to install antennas and equipment on the roof or exterior of a building. In urban markets, rooftop leases have become increasingly valuable as 5G densification drives demand for elevated antenna positions in dense environments.
What property types get rooftop leases: Commercial office buildings, residential multi-family buildings, retail properties, industrial buildings, hotels, churches with tall steeples, schools and university buildings.
Typical rooftop lease economics (2026):
- Small market buildings: $400-$2,000/month
- Suburban commercial: $700-$3,500/month
- Major metro buildings: $1,500-$6,500/month
- Dense urban (NYC, LA, SF): $3,000-$12,000+/month
Unique aspects of rooftop leases: Roof access, structural load requirements, and waterproofing concerns are important lease provisions. Equipment can affect building aesthetics and may require local permits or HOA approval. Co-location provisions are particularly important - urban buildings can host equipment from multiple carriers simultaneously, with each tenant potentially paying separate rent.
5G rooftop opportunity: 5G densification has pushed urban rooftop rates to record levels. If your building is in a major metro area and your rooftop lease was signed before 2020, it is almost certainly below current market rate. A free review will tell you the gap.
Small Cell Leases: The 5G Frontier
Small cell leases involve compact, low-profile antenna installations - typically a cabinet or node roughly the size of a pizza box - mounted on building exteriors, utility poles, street furniture, or rooftop edges. Small cells are the foundational infrastructure of 5G dense networks and represent the fastest-growing category of cell tower lease agreements.
What property types get small cell leases: Commercial buildings (exterior walls, rooftop edges), residential buildings (exterior walls in urban areas), utility pole owners (municipalities, utilities), street furniture owners.
Typical small cell economics (2026):
- Suburban installations: $150-$450/month per unit
- Metro urban installations: $280-$650/month per unit
- Dense urban (Tier 1 cities): $400-$900+/month per unit
Portfolio income potential: A commercial building in a dense urban corridor might host 3-5 small cell installations from multiple carriers. At $400-600/month per unit, a portfolio of small cell leases on a single building can generate $1,200-$3,000/month in aggregate income.
Key small cell lease considerations: Initial carrier offers are typically at the low end of market ranges. Escalation provisions are often 0% or minimal - this is a critical gap to address. Equipment footprint definition must be precise to prevent scope creep. Term length (carriers often seek 20-year terms) must be balanced against flexibility. Removal obligations must be explicit.
DAS: Distributed Antenna Systems
A Distributed Antenna System (DAS) is a network of antennas connected to a common signal source, typically used to provide wireless coverage inside a large venue or building, or around a dense urban area. DAS installations are common in stadiums, airports, shopping malls, hospitals, and dense urban streetscapes.
DAS lease economics: DAS lease rates vary widely depending on the installation's complexity and the coverage area served. Venue DAS installations (stadiums, airports) can generate substantial income - sometimes $5,000-$50,000+/month for large installations. Street-level or building DAS is closer to small cell economics.
DAS considerations: DAS agreements are typically more complex than standard tower leases, involving multiple carrier relationships and significant physical infrastructure. Professional review of any DAS proposal is essential.
Side-by-Side Comparison
Understanding which lease type you have - or might have - shapes your negotiation strategy. Here is a summary comparison:
- Ground lease: Lease land for a tower. 25-30 year term. $300-$8,500/month. Best leverage: expiration and scarcity of alternative sites.
- Rooftop lease: Building access for antennas. 20-25 year term. $400-$12,000+/month. Best leverage: 5G demand, co-location potential, urban density.
- Small cell lease: Compact node installations. 15-20 year term. $150-$900/month per unit. Best leverage: portfolio of multiple units, urban location premium.
- DAS: Multi-antenna coverage network. Varies widely. Best leverage: venue exclusivity, carrier competition for access.
Which Lease Type Do You Have?
Review your lease agreement's first paragraph - it should describe what is being leased. A ground lease will describe a specific area of land. A rooftop lease will describe access to a roof or building exterior. A small cell agreement will describe a specific mounting location for compact equipment.
If you are unsure of your lease type or want a professional assessment of your current lease terms and market position, contact us for a free review.