5G Cell Towers on Your Property in Canada: Pros, Cons & Appraisal Impacts

Across Canada, wireless companies are expanding their 5G networks. As coverage grows, more property owners are being approached about hosting antennas or towers on their land or rooftops.

On the surface, the idea sounds simple:

“We’ll pay you rent to use a small piece of your property for a 5G installation.”

In reality, it’s a long-term decision with legal, financial and market implications. A 5G tower can create a new income stream, but it can also affect how buyers, tenants, neighbours and lenders view the property. That matters directly for real estate appraisal and long-term value.

This article focuses on the Canadian context and looks at 5G towers from three angles:

• The basics: how 5G towers work and who regulates them in Canada

• The pros and cons of having a tower or antennas on your site

• How a 5G installation can influence an appraiser’s opinion of value

The goal isn’t to push you toward “yes” or “no,” but to help you understand what’s really at stake if you’re considering a tower lease, or if a tower has appeared near your property.

1. The Basics: 5G Towers and Who’s in Charge in Canada

When people talk about a “5G tower,” they might mean:

• A traditional ground tower with antennas and equipment at the base

• Rooftop antennas and cabinets on an existing building

• Smaller “small cell” units mounted on poles, light standards or building sides

From a property perspective, all of these are similar: equipment is mounted on or near your site, and the operator needs some form of space, access and power.

Federal vs Local Roles

In Canada:

• The federal government regulates wireless infrastructure and sets rules for RF exposure and antenna systems. Innovation, Science and Economic Development Canada (ISED) oversees siting and compliance for cell towers.

• Health Canada establishes RF exposure guidelines, which are intended to protect people from known adverse health effects.

• Municipalities usually don’t approve or reject towers in the same way they do normal buildings, but they do participate in consultation, design and community input. Some cities have their own antenna siting protocols.

For a property owner, you don’t need to become an expert in regulations, but you should understand that towers are not handled like a simple fence permit or deck addition. The approvals, safety standards and technical details are largely federal, with local consultation layered in.

2. Why Carriers Want Your Property

5G networks rely on many more antennas than older systems. Instead of a small number of huge towers, the trend is toward:

• Many more sites, sometimes closer together

• A mix of large structures and smaller “small cell” units

Your property might be attractive because of:

• Height (for rooftops or hills)

• Location (filling a coverage gap or serving a busy corridor)

• Access to power and fibre

• Zoning and existing land use (industrial, commercial or institutional uses can be easier from a community perspective than pure residential)

If your site fills an important gap in the network, you may have more negotiating leverage, because alternatives are limited.

3. The Pros of Having a 5G Tower on Your Property

Let’s start with why owners say “yes.”

3.1 Steady Passive Income

The most obvious benefit is rent. Carriers or tower companies typically pay:

• A recurring monthly or annual rent for the space they use

• In many cases, annual increases or step-ups over time

The footprint they need is often relatively small – a corner of a lot, a patch of roof, or some space beside an existing building. That means you can sometimes add income without losing your main use (a farm, an apartment building, a plaza, an industrial facility, etc.).

For income properties, this extra rent can:

• Boost net operating income (NOI)

• Improve cash flow and, in some cases, support a higher value under an income-based appraisal, if the lease is viewed as stable and market-supported.

3.2 Long-Term Tenancy

Tower leases are usually written with the long term in mind. While the fine print always matters, it’s common to see:

• An initial term (for example, several years)

• Multiple renewal options

From an owner’s point of view, this can feel like having a long-term commercial tenant – but one who uses very little physical space and doesn’t need parking or washrooms.

3.3 Potential for Increased Connectivity

Some properties actually become more attractive because of better coverage:

• Hotels, resorts, event venues and student housing often benefit from reliable connectivity.

• Rural properties can gain better coverage for emergency calls, remote work, and online services.

Improved connectivity won’t erase a buyer’s concerns about aesthetics or health, but for some users it’s a meaningful plus.

3.4 Possibility of a Lease Buyout

In some situations, specialized firms will offer you a lump sum payment in exchange for taking over the lease income.That can be attractive if:

• You want capital for other projects or debt repayment

• You prefer cash now over a long stream of smaller payments

However, it also means you’re selling off a piece of the long-term income associated with the property, which affects how an appraiser looks at the property’s future cash flow.

4. The Cons and Risks of 5G Towers on Your Site

It’s important to weigh the upside against the potential downsides.

4.1 Visual Impact

Towers and antennas are often highly visible:

• A ground tower can become a prominent feature on the skyline.

• Rooftop equipment can alter the profile of a building.

• Even small cells can be noticeable when mounted on street poles in front of homes or storefronts.

In residential settings, visual impact is often one of the strongest sources of resistance. It can affect how neighbours view your decision and how future buyers feel about the setting.

4.2 Perceived Health Concerns

Health Canada’s guidance on cell towers and 5G is that exposures from properly installed equipment stay below national limits and are not expected to cause health problems at those levels. However, many people still worry about:

• Long-term exposure

• Sensitive individuals or children

• The combined effect of multiple devices and towers

Whether or not those concerns are supported by mainstream science, they are very real in the marketplace. Appraisers and realtors routinely encounter buyers who:

• Refuse to live near a visible tower

• Discount properties that have direct line-of-sight to antennas

• Take longer to decide or negotiate harder if they are uneasy about RF emissions

In other words, perception alone can influence demand and price, even if the infrastructure meets all federal standards.

4.3 Easements, Encumbrances and Redevelopment Limits

A tower arrangement isn’t just a rent cheque. It usually comes with:

• Registered rights over part of your land or roof

• Access for service vehicles and technicians

• Space for power and data lines

• Conditions about building heights or interference with the signal

That can:

• Limit how you use certain parts of the site

• Complicate future redevelopment or severances

• Require negotiation or buyout if a future project needs the tower moved or removed

For a long-term hold where your use won’t change much, that might be fine. For an urban infill or redevelopment site, the limitations can be much more serious.

4.4 Neighbour Relations and Community Opposition

Saying “yes” to a tower on your property can affect your relationship with neighbours and the wider community:

• Residents may be concerned about visual impact, property value and health.

• Local councils and planning departments often receive questions and complaints when new sites are proposed.

Even if the decision is mainly between you, the carrier and federal regulators, you may still find yourself in the middle of community conversations, meetings, or media coverage.

4.5 Financing and Transaction Complexity

Not all buyers, lenders or insurers treat tower income the same way. Some may:

• Want to review the lease in detail

• Discount the tower income if they see it as more uncertain than typical rent

• Worry about broad easement language or termination clauses

The result can be:

• More complex due diligence

• A smaller pool of potential buyers (especially for smaller residential or mixed-use properties)

• Longer negotiation when selling or refinancing

5. How 5G Towers Affect Real Estate Appraisals in Canada

From an appraisal perspective, a 5G tower is more than just “extra rent.” It can both add value and create risk or stigma. How it plays out depends heavily on the specific property, location and lease.

5.1 Is the Property the “Host” or Just Nearby?

The first thing a Canadian appraiser will clarify is:

1. Host property

   • The antennas or tower are on the subject property.

   • The owner receives tower income, but the property is encumbered and visually associated with the structure.

     
     

2. Nearby property

   • The subject does not host the equipment but is located near a tower.

   • There is no income, but there may be visual impact, perceived risk, and possible stigma.

     
     

These two situations are analyzed differently. A host property has income to measure and legal rights to understand. A nearby property is more about external influence.

5.2 Highest and Best Use (HBU)

Appraisers consider whether the current use – including the tower – is the highest and best use of the site. In simple terms, they ask:

• Is this use legal under the regulatory framework?

• Is it physically possible given the site and improvements?

• Is it financially sensible compared to realistic alternatives?

• Is it maximizing the property’s value over the long term?

For a stable rural property where the tower sits in a corner of a large parcel, the answer might be yes: the tower adds income and doesn’t interfere with anything important.

For an urban development site that might be assembled with neighbouring parcels for future density, a long tower lease could hold the site back. In that case, the highest and best use might favour a future scenario without the tower, even if that means negotiating a buyout or relocation.

5.3 Income Approach: Treating Tower Rent Carefully

When a property hosts a tower, appraisers typically:

• Review the lease terms (rent, increases, term, renewal options, termination clauses, co-location rights)

• Consider the quality and strength of the tenant (major carrier vs smaller operator)

• Evaluate how certain and long-lasting the income really is

They may:

• Add tower rent to the property’s overall income and capitalize it at a rate that reflects both normal property risk and tower-specific risk; or

• Model the tower income somewhat separately, especially if there’s a chance it will end before the rest of the building’s economic life.

In many cases, tower income will increase the value, but not necessarily by a simple “rent ÷ cap rate” calculation. Appraisers also consider the encumbrances and stigma that come with the lease.

5.4 Direct Comparison Approach: Looking at Market Evidence

Under the Direct Comparison Approach, appraisers look at sales of similar properties:

• Properties that host towers or antennas

• Properties located near towers

• Properties in the same neighbourhood with and without visible infrastructure

They then look for patterns:

• Do properties with towers sell for more because of the income?

• Do nearby homes sell for less because of visuals or perceived risk?

• How long were those properties on the market?

• What did buyers and agents say in their remarks?

In some areas, the market may show a noticeable discount for homes with direct views of a tower. In dense urban settings with lots of infrastructure, the difference might be much smaller or hard to isolate.

The appraiser’s job is to reflect what buyers and sellers actually do, not just what theory suggests.

5.5 External Influence on Nearby Properties

For properties near a 5G tower (rather than hosting it), any negative effect is usually treated as external influence or external obsolescence:

• The tower is outside the property lines, but it may still affect how buyers feel about the property.

• The impact, if any, tends to depend on distance, visibility and local attitudes.

Appraisers may find little effect in areas where towers are common and accepted, and a stronger effect in neighbourhoods where a new structure is visually dominant and highly controversial.

6. Practical Tips for Canadian Owners Considering a 5G Tower Lease

If you’ve been approached with a tower proposal in Canada, here are some general steps before you sign anything:

6.1 Get Advice Early

• Talk to a real estate lawyer who understands commercial leases and easements.

• Consult a qualified appraiser to get a sense of how the tower could affect market value and marketability, now and in the future.

• Ask your lender if they have any policies about properties with tower leases.

6.2 Focus on the Big Picture Terms

Instead of getting lost in technical clauses, focus on key questions like:

• How much space are they using, and where exactly is it on the site or roof?

• How long is the commitment when you add up the initial term plus renewals?

• How easy is it for them to walk away, compared to how easy it is for you?

• Does the lease limit what you can build or how you can redevelop the property later?

• What happens if you sell the property – does the lease transfer cleanly to a new owner?

6.3 Think About Neighbours and Future Buyers

Ask yourself:

• How will this look from nearby homes or businesses?

• Will this create ongoing questions and concerns about health and value?

• Will the type of buyer you’d like to attract in future be okay with a visible tower?

Even if you personally are comfortable with the idea, your future buyer might not be.

6.4 Weigh Income vs Flexibility

In many ways, hosting a tower is a trade-off between immediate income and future flexibility:

• For a long-term hold with limited redevelopment potential, extra income might be very attractive.

• For a site that could be assembled, redeveloped, or intensified, the future cost and complexity of dealing with a tower might outweigh the rent.

A good appraisal analysis will help you see both sides in dollar terms, not just in theory.

7. Final Thoughts

5G cell towers and antennas are now part of the Canadian landscape. For property owners, they represent both an opportunity and a responsibility:

• Opportunity: long-term passive income, stronger connectivity, and a new way to monetize space that might otherwise sit idle.

• Responsibility: managing easements and leases, understanding how neighbours and buyers will react, and recognizing that the decision can influence your property value for decades.

From an appraisal perspective, a tower or rooftop installation is:

• Not automatically good

• Not automatically bad

• A site-specific factor that needs to be weighed carefully in the context of your property, your market, and your long-term plans.

If you’re considering a 5G tower in Canada, the best next step is usually to gather information: get an appraisal, get legal advice, and be honest about your goals. With a clear view of both the pros and cons, you can decide whether a tower is a smart addition to your property – or a complication you’d rather avoid.