Cell tower lease rates: look at the whole deal
The short answer
Look at everything the tower company pays you before you decide your rent is low. Base rent, rent increases and extra payments all count.
What could change the answerWhen your next rent increase is due and whether more phone companies add equipment to the tower. Also how much space they use and what rights your lease gives the tower company.
On this page
How rent and extra payments add up
Start with base rent. Then look for payments for extra equipment or for extra carriers added to the tower. These three leases show how different the total can look.
| Lease | Base rent | What else to check |
|---|---|---|
| Ferguson ground lease | $1,600 a month to start | Rent goes up every year starting in year two, so the starting figure is not what you will be paid later. |
| Hialeah tower lease | $45,023.68 a year | Plus $300 a month for extra equipment. Convert both to annual before you add them together. |
| Des Peres lease extension | $19,933 a year (2022) | Base rent before the extension. Payments from extra tenants came on top of it. |
In Ferguson, rent starts at $1,600 a month and climbs every year after the first. In Hialeah, the base rent and the equipment payment are two separate lines, so you have to add them up yourself. In Des Peres, $19,933 was the base rent when the city looked at extending the lease in 2022. Read your own lease the same way: find the base rent first, then everything paid on top of it.
Don't average these numbers. Each lease pays in a different way, on a different date, to a different kind of owner. An average would look useful, but it would mislead you. Instead, find the example that is most like your lease.
How to figure your yearly rent
Start with your signed lease and every amendment. Find your current base rent. Then compare it with what you were actually paid lately. If the numbers don't match, find out why. A payment can include money paid back for a bill you covered, or rent that came late. An amendment may also have changed the rent.
To get yearly rent, multiply monthly base rent by 12. That gives you a number to compare. It is not a promise of what you will get over the next 12 months. If a rent increase kicks in during the year, the real total will be different. Write the date your current rent started next to the number.
List each extra payment on its own line: extra equipment rent, payments for other carriers on the tower, and repaid utility or property tax costs. Money paid back for a bill you covered is not extra income. Leave out any one-time signing bonus. It is not part of your yearly rent.
This matters when someone offers to buy your lease. Buyers often quote a multiple: the price divided by one year of rent. A multiple based on base rent alone is different from one based on everything you receive. Our valuation guide shows what your future rent is worth in today's dollars.
Is another lease a fair comparison?
A good comparison has to match on both the land and the contract. A nearby tower can be a poor match if its lease gives different rights or pays a different kind of owner.
| Check | Your lease | Ask about the other lease |
|---|---|---|
| Who gets paid | Landowner, building owner or tower company | Is the payment going to the same kind of owner? |
| Site and use | Ground, rooftop or other | Is the space and use similar? |
| What is paid | Base rent, extras and payments that change | Does the number mix payment types? |
| Date | When rent started and the next increase | Is the amount current or old? |
| Lease length | Years left, plus extra terms the tower company can still choose to add | Is the tower company getting more years for that rent? |
| Rights | Access, utilities, room to expand, and the right to sell the lease to another company | Does the other lease give the tower company more rights? |
| Proof | Full lease, part of it, or just word of mouth | Can you check the amount and terms? |
If you don't know something, write "unknown." Don't guess just to fill the box. A missing rule on whether the tower company can expand onto more of your land can matter more than a small difference in rent.
Do more carriers on the tower mean more rent for me?
Check what your lease says before you count antennas. The tower company's income and your rent are not the same thing. Your lease may pay you extra when phone companies are added to the tower. Or the tower company may keep all of that money.
Find what triggers an extra payment. It could be a new tenant, new equipment, more ground space, or a set percentage of what the tower company collects. Then check the exceptions, how the payment is figured, what records you can ask to see, and any amendment that changed the deal. Seeing a new carrier's name on the tower is not enough.
Our lease checklist helps you find the right parts of your lease. If you think a payment is missing, treat it as a question to ask. It does not automatically mean you are owed money.
Compare rent increases over the same years
Your starting rent doesn't tell the whole story. Write down the increase percentage, how often it happens, when the next one is due, and which payments it covers.
The same percentage paid every year grows much faster than the same percentage paid every five years. If your increase follows a measure of inflation, find out which one, when it is measured, and the smallest and largest increase allowed. Don't settle for the phrase "inflation protection."
Use the buyout calculator to compare increases that are a fixed percentage. It shows when each yearly increase is applied. If your increase follows inflation or starts partway through the year, write out your real payment schedule first. Otherwise, treat the result as a rough guide.
Why calling it rural isn't enough
For a rural site, write down road access, how power lines reach the tower, how much ground the tower uses, and your future plans for the land. Two rural properties can be very different. The rural rates worksheet helps you check each of these.
Don't use farm rent per acre to judge a tower lease. What matters is what the tower company can do on your land, not just how many acres it uses. And don't assume a tower is extra valuable to the company just because it is tall or shows up on a coverage map.
What to do if your rent looks low
First make sure the comparison is fair. Then figure out what choice is actually in front of you. It could be a request to change the lease, a deadline in the lease, an offer to add more years to it, or an offer to buy it. Each one calls for a different talk. Low rent alone does not change a lease you already signed.
Put together one page with your current payments, the changes being asked for, key dates, and what you still need to find out. Ask the tower company to explain its offer in writing. If it wants new rights, weigh those rights along with any rent increase.
Keep your lease and every amendment next to your worksheet. The rent you started with, the rent after any amendment, and the rent being offered now are three different numbers. Label each one before you compare it with anything. If you want to see more real lease terms, browse our lease examples.
Common questions
Is there one average cell tower lease rate I can use?
A national average will not tell you much about your lease. Rent depends on location, how many carriers are on the tower, how much space and equipment they use, and how long the lease has been running. Compare your lease with deals that match it on those points, not with a single headline number.
Can I compare annual rent with a monthly offer?
Yes, but write down the original amount and whether it was monthly or yearly. Also check when increases happen and whether extra payments are included. Converting to monthly is just math. It doesn't mean the lease actually pays monthly.
Should the phone company's name decide my rent?
No. The name of the phone company on the tower doesn't set what you get paid. Look at which company actually signed your lease, the site, and the rights the lease gives. Then look at the current offer. Don't rely on a rent range you saw online for that brand.
Does a buyout offer show what my rent should be?
No. A buyout buys your future rent, and sometimes other rights too. Your current rent is only one piece. Read the offer papers to see how many years of rent and which rights are being bought. Then compare the lump sum with the rent you would keep getting.
Can these lease examples tell me if I'm underpaid?
Not by themselves. They help you ask better questions and spot what is missing. To know for sure, you need leases that truly match yours and a close read of your own lease.
Know what the offer means for you
Compare your rent and offer, then use the questions above to decide what to ask for next.