Key Takeaways
- A single-tenant tower with less than five years remaining can still be highly valuable.
- Lease expiration often increases owner leverage, not reduces it.
- Older towers with long-term escalations may generate strong cash flow.
- Carriers may prefer collocation over costly new construction.
- Expert negotiation can significantly improve lease outcomes.
If your cell tower has only one tenant and less than five years remaining on the lease, you may have heard that the site isn’t very valuable. That assumption is common—but often incorrect.
In reality, a single-tenant tower nearing lease expiration can present a unique opportunity for property owners who understand how tower economics and carrier behavior really work.
At JP Tower Consulting, we regularly help landowners uncover hidden leverage in situations others overlook.
Why Single-Tenant Towers Are Often Undervalued
It’s true that multi-carrier towers generate higher monthly revenue for tower companies. However, that doesn’t mean a single-tenant site lacks value—especially when timing and location work in your favor.
Here’s why:
- Harder to Replace: If there is no nearby competing tower, your site becomes strategically important to the carrier.
- New Construction Is Expensive: Building a new tower requires zoning approvals, permitting, environmental reviews, and capital investment—often far more costly than renewing or upgrading an existing lease.
- Collocation Is Often Cheaper: Other carriers may prefer to collocate on your existing tower rather than build their own, particularly when Master Lease Agreements (MLAs) make collocation faster and more cost-effective.
When carriers have limited alternatives, property owners gain leverage.
Lease Expiring Soon? That Can Work in Your Favor
A lease with less than five years remaining is often viewed as a weakness—but in practice, it can be a strategic advantage.
- Tower companies and carriers don’t like uncertainty.
- A looming expiration forces decisions.
- That pressure can open the door to better lease terms, higher rent, or a buyout discussion.
If your current rent is relatively low—say $500 per month—there is often significant room for improvement through skilled negotiation.
Older Single-Tenant Towers Can Be Extremely Profitable
Many single-tenant towers built 20–30 years ago have something very powerful working in their favor: long-term rent escalations.
For example:
- A 3% annual rent increase over decades can dramatically raise the effective value of the lease.
- These sites often produce strong cash flow relative to their original lease terms.
- When properly positioned, they can attract favorable renewals or buyout offers.
Even if outside buyers or inexperienced advisors undervalue your site, the true value may be much higher.
Why Expertise Matters More Than Ever
Single-tenant leases nearing expiration are not one-size-fits-all. The outcome depends on:
- Location and tower spacing
- Carrier alternatives
- Lease language
- Escalation history
- Market demand
This is where professional guidance makes a measurable difference.
At JP Tower Consulting, our team brings 60+ years of combined experience helping property owners:
- Evaluate expiring cell tower leases
- Identify negotiation leverage
- Secure improved lease terms
- Explore buyouts when timing is right
FAQs
Is a single-tenant cell tower worth less than a multi-tenant tower?
Not always. While multi-tenant towers generate more revenue, single-tenant sites can be strategically valuable depending on location, alternatives, and lease timing.
Does a lease expiring in less than five years hurt my negotiating position?
No. In many cases, it strengthens it by forcing the carrier and cell tower company to make a decision.
Can I increase rent if my current rate is low?
Often, yes—especially with professional negotiation and market insight.
Should I consider a buyout for a single-tenant tower?
It depends on lease terms, remaining years, and long-term goals. A professional review is essential.
Talk to a Cell Tower Lease Expert
If your single-tenant cell tower lease is expiring in less than five years, don’t assume it’s a weak position.
Contact JP Tower Consulting today to review your lease and uncover opportunities others may miss. With 60+ years of combined experience, we help property owners maximize tower value with clarity and confidence.
