New Site Development: What to Expect When a Carrier Wants to Build a Tower

Introduction: When a carrier or tower developer selects your property as a potential tower location, it opens the door to long-term passive income. But the development process is more detailed than most property owners expect.

Due Diligence Takes Longer Than Ever

Modern wireless development requires extensive reviews, including:

• Environmental and cultural surveys

• FCC compliance checks

• Geotechnical testing

• Zoning approvals

• Balloon or visibility tests

Many projects now take 12–18 months from identification to construction.

Option Agreements Are Standard

Carriers usually start with an option agreement giving them time to complete due diligence.

Negotiate for:

• Monthly option payments

• Firm expiration dates

• Automatic voiding if construction doesn’t start

• Freedom to evaluate other offers once the option ends

  
  

Ground Rent Depends on Market Conditions

Typical new tower leases range from $800 to $2,500 per month, influenced by:

• Location and zoning

• Carrier urgency

• Tower height and technology

• Availability of alternative sites

Annual escalations of 2–4% are common.

Protect Property and Long-Term Rights

A solid lease should include:

• Defined access and utility easements

• Site expansion limits

• Indemnification and insurance requirements

• Revenue sharing on colocations

• Relocation clauses for redevelopment

Colocations can dramatically increase your site’s value when negotiated properly.

Long-Term Benefits for Property Owners

Once constructed, cell towers generally require minimal landlord involvement and produce reliable, passive income for decades. Improved connectivity often benefits tenants and enhances the property’s overall appeal.