Cell Tower / Cell Site - Ground Lease

Leases

Cell site leases (in many cases licenses) are different from other commercial real estate leases. Since
they were created by the tenants (the wireless carriers and tower companies), lease terms are generally
favorable to the tenant, not the property owner.

Five year terms automatically renewing 4-5 times - making the actual term 25-30 years

The tenant has the right to terminate with little notice - typically only 30-90 days notice is required.

Rents escalate either annually or every five years at the end of each term.

Escalations range from 3-5 percent annually and 10-25 percent for term escalations.

Property tax often does not pass through to the tenant resulting in owners paying the higher property tax
associated with the cell site revenue.

Utilities pass through to the tenant.

Lease payments are usually monthly.

Collocation or Co-location (both spellings are used in the industry) is a provision that splits additional revenue
with landowners. Many owners do not have this provision.