Generating Passive Income for Your Self-Storage Operation With a Cell-Tower or Telecom-Antenna LeaseGenerating Passive Income for Your Self-Storage Operation With a Cell-Tower or Telecom-Antenna Lease

Have you considered adding a cell tower or telecom antenna to your self-storage property? By leasing land to a mobile carrier, you can generate passive income and increase your property value—with no responsibility or financial outlay. Learn the benefits and drawbacks of these lease agreements as well as how to get started.

Ted Unkel, Principal

February 2, 2025

5 Min Read
An image of a cell tower surrounded by sound waves

Have you been approached about putting a cell tower on your self-storage property or adding telecom antennas to your building? Have you considered or pursued it? Passive income can be a great goal for any facility operator, and either of these options can provide it. In fact, if you can get a lease agreement, it can be a unique revenue opportunity.

This article answers some of the common questions that may be popping into your head right now, such as what are the benefits? Are there any drawbacks? If I’m interested, how do I get equipment placed on my property? Let’s dive in!

What Are the Benefits?

One of the most significant benefits of adding a cell tower or telecom antenna to a self-storage facility is additional revenue. This passive income can increase profitability without adding operational responsibilities. The lease spans several years with built-in rent escalations, providing long-term financial stability.

With its long-term value, this lease agreement is an asset that can be transferred or assigned like any other. It can be sold in the open market if you need capital. If you decide to sell your self-storage property, the rental stream should increase your property value.

By having a cell tower or telecom antenna on your property, connectivity and network coverage will also be enhanced for your staff and customers. This benefits tenants who use apps for keyless entry or account management. Facility operations will also improve, with smoother communication, heightened security and better internet access for tools that use it to upload or download data.

A traditional cell tower doesn’t require much land, making it ideal for self-storage properties with limited space. For multi-story facilities, antenna installations may be preferred, using the height of the building to achieve the same coverage. The equipment is typically placed on the roof, away from normal operations. This efficiency allows you to maximize your land’s potential without disrupting the primary business.

Once a cell tower is installed, ongoing maintenance and costs are minimal and not your responsibility as the self-storage operator. The tower owner or wireless carrier handles everything. It’s a hassle-free investment that doesn’t consume your resources.

Finally, leasing space for a cell tower or telecom antenna often leads to a long-term partnership with the carrier, which can be beneficial if you own multiple properties. For example, it can lead to financial security and potential collaborations in other areas like onsite data storage. There’s also the possibility for future upgrades as technology advances, which could lead to increased lease-rent payments that further boost your revenue.

Are There Any Drawbacks?

While there are many benefits to having a cell tower or telecom antenna on your self-storage property, it will consume some space. Will you need that space for business expansion down the road? Perhaps you’ll want to add more storage units or boat/RV parking. This type of lease is a real estate transaction, and you must prioritize your core business. Consider whether the rent you’ll receive outweighs the cost of lost opportunity.

A cell-tower or telecom-antenna lease will require that you don’t interfere with the operation of the equipment; but will the equipment interfere with the operation of your self-storage business or its long-term prospects? Some people don’t like the way it looks, which may limit your buyer pool if you ever sell the property. There’s also a perception of health risk, which could affect your labor pool or customer base. Finally, local regulations and zoning laws must be evaluated to ensure compliance.

How Do I Get Started?

Carriers like AT&T, T-Mobile and Verizon determine where a new cell tower or antenna will be constructed. They typically choose locations that fill coverage gaps or improve an existing network. This inside-out approach makes the question of how to get a cell tower on your self-storage property more about hope than strategy. That decision generally hinges on the need in your area, whether or not you fall within a search ring, and whether a site-acquisition firm or representative contacts you.

Several factors can make your self-storage property a favorable choice, including space, access, population-coverage area and lack of interference, to name a few. Financial considerations also play a role.

In the end, installation and rent costs must make sense for the carrier, just as the compensation for putting their equipment on your property must be reasonable for you. In addition to rent, there are other things to negotiate before you draft and finalize a lease and begin the due-diligence process. For example, where will the equipment be placed? How will it be accessed by workers? How long will the equipment be on site, and what happens if you change your mind?

A Smart Connection

Adding a cell tower or telecom antenna to your self-storage property is a strategic decision that can yield significant benefits. If you’re approached to install one, consider the visual impact as well as other implications for your business. Educate yourself on the leasing process and consider hiring a professional firm to protect your interests.

Though similar to real estate leases, cell-tower and telecom leases have their own nuances. They’re also long-term commitments, so it pays to be cautious. An experienced consultant can bring significant value to the table in the form of negotiation skill, market knowledge and legal expertise. Their goal is to ensure that what works for your self-storage business today continues to benefit you as long as the cell tower or antenna exists.

Ted Unkel is a principal at Cell Site Advisors, which specializes in negotiating telecom leases and transactions for property owners. He has more than 20 years of experience in the telecom industry, mostly working in nationwide negotiations on behalf of Crown Castle, a real estate investment trust that works with landowners and property owners on cell-tower leases and real estate infrastructure. You can reach him at 866.305.8279 or [email protected].

About the Author

Ted Unkel

Principal, Cell Site Advisors

Ted Unkel is a principal at Cell Site Advisors, which specializes in negotiating telecom leases and transactions for property owners. He has more than 20 years of experience in the telecom industry, mostly working in nationwide negotiations on behalf of Crown Castle, a real estate investment trust that works with landowners and property owners on cell-tower leases and real estate infrastructure. You can reach him at 866.305.8279 or [email protected].

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