In today’s always-connected world, cell towers and cell sites are as essential as electricity and running water. As wireless carriers race to improve coverage and capacity, one location continues to rise to the top of their priority list: shopping centers.
From suburban strip malls to massive urban retail plazas, shopping centers have long been— and will continue to be—hot spots for wireless infrastructure. But why are these retail hubs so desirable? And if you’re a property owner or asset manager, what should you know before signing a lease?
In this guide, we’ll cover everything you need to know about cell tower and cell site leases at shopping centers. Whether you’re evaluating your first proposal or managing a portfolio of existing leases, you’ll walk away with the insights needed to protect your property, maximize value, and avoid costly missteps.
Why Wireless Carriers Love Shopping Centers
Shopping centers check almost every box on a wireless carrier’s ideal site checklist. Here’s why:
1. Commercial Land Use
Cities and counties typically prefer to place wireless infrastructure in commercially zoned areas. Why? Because these zones are already developed, they’re usually away from sensitive uses like schools and single-family homes, and they’re less likely to face community opposition. Shopping centers often fall squarely into this favorable zoning.
2. High User Density
Retail centers draw large, consistent crowds—both in foot traffic and vehicle volume. Shoppers, restaurant-goers, and employees all carry smartphones and consume huge amounts of mobile data. Installing a cell site at a busy shopping center allows carriers to serve hundreds, sometimes thousands, of users simultaneously.
3. Proximity to Residential Areas and Highways
Shopping centers are typically located at the heart of residential neighborhoods and near major roadways. This makes them ideal for carriers aiming to fill coverage gaps and ensure strong signals along commuting corridors.
Common Types of Installations at Shopping Centers
Depending on the layout and structure of the property, carriers may propose a variety of installation types:
● Rooftop Installations
For multi-tenant buildings with flat rooftops, rooftop cell sites are the most common. Carriers install antennas, base equipment, and sometimes concealed panels or screens to hide the gear.
● Monopoles or Faux Trees
If rooftop access is not feasible, a carrier might propose a standalone structure such as a monopole or stealth tree (e.g., a faux pine). These are usually placed behind the center, in a landscaped area, or adjacent to a utility easement.
● Small Cells or DAS Nodes
As 5G expands, more carriers are using small cells or Distributed Antenna Systems (DAS). These are less intrusive and can be installed on light poles, building exteriors, or parking lot structures.
Will a Cell Site Installation Affect My Anchor or Inline Tenants?
This is one of the most common concerns shopping center owners have—and for good reason. Anchor tenants like grocery stores, pharmacies, or department stores often have strict lease clauses regarding construction, visual aesthetics, or rooftop access.
The short answer: It depends, but with proper planning, usually no.
Before approving a cell tower or site lease, here are a few key steps to take:
- Review Existing Tenant Leases
Look for use clauses, exclusive rights, and rooftop access restrictions. NNN lease agreements may contain language that limits your ability to make modifications near a tenant’s premises or restricts rooftop utility installations. - Ensure Aesthetic Integration
Work with the tenant (the wireless carrier) to make the installation blend in. As an example, in San Diego, California, we assisted on an AT&T site where the City required the antennas to be concealed. The carrier paid for custom screening and whimsical “child cut-out” artwork to make the site family-friendly and architecturally compatible. This didn’t just satisfy city officials—it complemented the shopping center’s aesthetic and retail brand. - Coordinate With Anchor Tenants
It’s good practice to notify anchor tenants of significant projects. Keeping communication open helps prevent future conflicts, especially if the cell site location is near their leased space.
What Should You Look Out For in a Cell Tower Lease?
While the monthly rent might be the shiny object grabbing your attention, there are many legal and financial terms in a lease that deserve your full scrutiny.
Here’s a checklist of key elements every shopping center owner should carefully review:
1. Rent and Escalation
Negotiate competitive market rent (typically between $2,500 and $5,000/month) and ensure a built-in annual escalation (usually 2%–4%). Don’t accept flat-rate offers or long-term freezes.
2. Lease Term and Options
Most cell tower leases are structured with an initial 5-year term and four or five 5-year renewal options, totaling 25 to 30 years. Ensure the renewal terms are at your discretion—not automatic—and include opportunities to renegotiate rent.
3. Insurance and Indemnification
The lease should require the tenant to carry comprehensive insurance coverage and name your entity as additional insured. Indemnification language should be strong and clear—protecting you from liability for tenant operations, even in worst-case scenarios.
4. Redevelopment Clauses
Maintain the right to terminate or relocate the site if you choose to redevelop the property. Without this clause, a cell site can become a development roadblock worth far less than the income it generates.
5. Temporary Relocation
During a roof repair or construction, you may need to temporarily move the tenant’s equipment. Include a clause that allows for temporary relocation at the tenant’s expense—with their full cooperation.
6. Access and Utility Rights
Ensure that tenant access is limited to reasonable hours unless there’s an emergency. Make them responsible for pulling separate utility meters and paying directly for their usage.
Will the Cell Site Impact Property Value or Cap Rate?
A properly negotiated lease adds value to your asset. The income becomes part of your rent roll, improving NOI (Net Operating Income), which directly influences your cap rate and property valuation.
However, poorly structured leases—with below-market rents, no redevelopment exit, or permanent access easements—can negatively impact your ability to sell or refinance.
That’s why it’s essential to think long-term. A cell tower lease might bring in $40,000 per year today, but a redevelopment clause can preserve millions in future project value.
What If You’re Offered a Buyout of Your Lease?
Many shopping center owners receive offers from third-party companies wanting to buy their cell site lease. These companies promise a lump sum—often in the six or even seven figures—in exchange for the right to collect the rent for the next 30 years.
This can be tempting, especially if you’re considering:
- Paying down debt
- Reinvesting into property improvements
- Selling or refinancing the property
- Diversifying income into a lower-risk investment
But there’s a big caveat: Most buyout offers undervalue the lease.
We’ve seen cases where a lease generating $50,000/year with 4% annual escalations was offered a buyout worth only $450,000—when the true market value was closer to $700,000.
Get an appraisal. Review the lease. Consult an expert.
Even better, negotiate improved terms before selling to increase the buyout value. This is one of the most overlooked strategies to maximize profit.
How We Help Shopping Center Owners Like You
At Airwave Advisors, we’ve worked with hundreds of retail landlords—from individual investors to national REITs—to secure, improve, and monetize their cell tower and cell site leases.
Our services include:
- Reviewing lease proposals and amendments
- Negotiating rent increases and escalation clauses
- Auditing existing agreements for missed revenue
- Advising on rooftop expansions and small cell installations
- Representing you in lease buyout negotiations
As a trusted advisor to shopping center owners across the country, we understand the retail landscape and how wireless tenants fit into your business model.
Case Study: Donahue Schriber Realty Group
Here’s what one of Southern California’s largest private shopping center owners had to say:
“Dear Nick, I just wanted to thank you for the work you’ve performed for Donahue Schriber related to our cell tower leases. Your depth of knowledge and your networking connections have already proven invaluable in the brief year or two that you’ve been working with us. The money that you’ve saved us or generated for us has more than covered your fees. We will gladly continue to work with you at our centers. “
–Elizabeth Schriber, VP Operations, Donahue Schriber Realty Group
That’s the kind of long-term value we strive to deliver.
FAQs
Q: Will a cell tower affect my tenants’ operations or experience?
A: Not if done properly. With architectural screening and strategic placement, most tenants won’t even notice. Just be sure to review their lease clauses before moving forward.
Q: What’s a fair rent for a shopping center site?
A: It depends on location, tenant type, and installation. Contact Airwave Advisors to discuss rent. Don’t settle for less without a market analysis.
Q: Should I sell my lease?
A: Only after a proper valuation. If you have a specific capital need or redevelopment plan, a lease buyout might make sense—but don’t accept the first offer. These deals are highly negotiable.
Q: Can I ask tenants to pay for concealment?
A: Yes—and you should. Many municipalities require stealth facilities, and tenants are often willing to pay for screens, enclosures, or artwork that integrates the site into your center.
Let’s Talk About Your Property
Whether you’re being approached for the first time or managing a portfolio of leases, we’re here to help you protect your investment and maximize its return.
At Airwave Advisors, we bring experience, negotiation expertise, and insider market data to every deal. Let’s turn your rooftop or ground space into a valuable, income-producing asset—the smart and strategic way.
Have A Cell Tower or Cell Site Question?
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(888) 443-5101
About Nick G. Foster
Since founding Airwave Advisors® in 2014, Mr. Foster has added value to over 400 clients ranging from the State of Nevada, City of Beverly Hills, to Habitat For Humanity. Mr. Foster focuses on cell tower lease renewals, buyouts, new lease negotiation, and cell site lease management. Prior to starting Airwave Advisors® Mr. Foster founded and led the Cell Site Services Group within nationwide commercial real estate services leader Cassidy Turley (now known as Cushman & Wakefield).