How to Read Your
Cell Tower Lease

Getting Your Lease Copy

Before you can read your lease, you need to locate it. Cell tower leases are often filed with the county recorder's office as they create an interest in real property. You can request a copy from:

• Your own files, if you kept a copy when you signed
• Your carrier or tower company's lease administration department (they are generally required to provide you a copy upon request)
• The county recorder's office or assessor's office in the county where your property is located
• A title company, if the lease was recorded as part of a property transaction

If you inherited the property or purchased it without being told about the lease, the carrier may still be paying rent into an old account. Contact your county recorder's office with your property address to find any recorded encumbrances.

Preliminary Sections: Parties, Recitals, and Definitions

The preliminary sections identify the parties to the lease and establish key definitions used throughout the document. Focus on:

Parties. Who is the landlord (you or your entity) and who is the tenant? The specific entity named as tenant matters - it should be a financially stable entity, not just an unnamed subsidiary. If your lease names a small LLC rather than the parent company, you may want to negotiate a parent guaranty.

Definitions section. Many leases have a definitions section that provides specific meanings for terms used throughout the document. Read this carefully - the defined term "Equipment" might include more (or less) than you assume, and the defined "Premises" specifies exactly what is being leased.

Recitals. The recitals describe the background and purpose of the lease. While not legally binding in most jurisdictions, they can be useful context for understanding the intent of specific provisions.

Rent, Escalation, and Payment Sections

This is often the most important section financially. Key provisions to identify and evaluate:

Base rent amount. What is your monthly rent? When does it start? Is there a rent commencement date that differs from the lease commencement date (some leases include a free rent period during construction)?

Escalation formula. How does rent increase over time? Look for the specific percentage and the date on which it takes effect each year. Common language: "Monthly rent shall increase by [X]% on each anniversary of the Commencement Date." Note whether this is truly annual compounding or a different calculation method.

Co-tenancy provisions. Is there additional rent for co-tenants? Look for language like "Co-location Rent" or "Additional Tenant Fee." If this provision is absent, you are receiving no compensation for additional carriers on the tower.

Late payment provisions. What happens if rent is late? Interest rates and cure periods.

Term and Renewal Sections

Commencement date. When does the lease begin? For new construction leases, there may be a "Lease Commencement Date" tied to permit issuance or construction start that differs from the "Rent Commencement Date."

Initial term length. How long is the initial term? Typically 5 years.

Renewal options. How many renewal options does the tenant have? For how long each? How must they be exercised (written notice, timeframe before expiration)? This section determines the total potential lease duration and your key negotiating windows.

Automatic renewal language. Look for phrases like "shall automatically renew" or "unless Tenant provides notice of non-renewal." Automatic renewal favors the tenant - they can extend without active effort on their part.

Termination rights. Can the tenant terminate at will with notice? What is the notice period? This provision significantly affects your security of income. A 30-day termination right is very unfavorable; a requirement for 12+ months notice or compensation for early termination is much better.

Rights and Restrictions Sections

Permitted use. What is the tenant permitted to do on the property? This should be specifically limited to telecommunications equipment and infrastructure - not broadly defined in ways that might allow unexpected uses.

Equipment definition. What equipment is the tenant authorized to install? Is it specifically listed or broadly described? Vague equipment descriptions allow scope creep without additional compensation.

Modification and expansion rights. Can the tenant modify or expand equipment without your approval? Ideally, any modification requires prior written consent or at minimum prior written notice and triggers a rent adjustment discussion.

Assignment and subletting. Can the tenant assign the lease or sublet space to another carrier? Prior written consent requirements protect your interests; unrestricted assignment does not.

Access rights. When and how often can the tenant access the property? What notice is required? Are access hours restricted?

Protection and Liability Sections

Indemnification. Who indemnifies whom from what? The tenant should broadly indemnify the landlord from claims arising from the tenant's equipment, operations, and the tower itself. Review whether the indemnification requires negligence or whether it is broader.

Insurance requirements. What insurance must the tenant maintain? Minimum coverage amounts should be $2-5M in general liability. You should be named as an additional insured.

Environmental provisions. How is environmental liability allocated? Particularly important if generators with fuel storage are present.

Equipment removal. Is the tenant required to remove all equipment and restore the site at lease end? This provision must be explicit - an implied obligation is not enough.

Red Flags to Look For

After reading the lease, consider whether any of these common red flags are present:

• No escalation clause or escalation below 2% annually
• No co-tenancy/co-location fee provision
• Broad termination rights with minimal notice (30-60 days)
• No equipment removal obligation at lease end
• Unrestricted assignment allowing lease transfer without your consent
• Vague equipment definition without specific footprint limits
• Inadequate indemnification limiting carrier liability to negligence only
• No insurance requirements or insurance minimums well below $2M
• Automatic renewal provisions without any notice requirement on the tenant
• Rent below current market rate with no upcoming renegotiation trigger