For many property owners, the wireless industry appears to have its own vocabulary – here are a few key terms you should be familiar with:
Cell Site / Cell Tower
A location where a wireless carrier has installed communications equipment and cellular antennas on a tower or rooftop to operate their wireless network.
Lease Agreement / Wireless Lease
The contract between a wireless carrier or tower company and the property owner detailing the financial and operational terms and conditions under which a cell tower can be operated.
Rent paid to the property owner by additional wireless carriers to place their antennas and/or communications equipment on a cell tower owned by another carrier or tower company.
The lease terms that specify when and how much the rent paid by the wireless carrier will increase, typically defined as a percentage of rent at fixed intervals.
Right of First Refusal (ROFR)
Language within the lease that allows the wireless carrier or tower company to match a buyout or prepayment offer made by a third party.
A property right granted to a third party to use someone else’s property for a specific purpose, such as an access road, or a portion of land or building rooftop to operate cellular equipment.
A section of the Internal Revenue Code that allows property owners to sell property and reinvest the proceeds into property of “like kind”, thus deferring capital gains taxes.