5G networks are about to rapidly evolve what internet-based products and services are capable of doing. From driverless cars to streaming services, 5G could potentially bring about the biggest tech upgrade since the invention of the internet!
Before 5G technology can take off and hit the mainstream, current network infrastructures will have to be upgraded and expanded, which has some interesting implications for landlords. New infrastructure means new cell sites, and in the case of 5G, the number of cell sites that will need to be created is substantial.
5G networks will be up to 100 times faster than current 4G speeds. But the throughput of 5G might not be its most impressive feature. Network latency, or the time it takes for a specific node in the network to respond to another, is one of the biggest obstacles standing in the way of real-time communication, and it's something that 5G aims to eliminate. With latency removed from the equation, everything connected to the network, be it a mobile-user, a machine, or a piece of software, will be able to instantaneously send and receive data without any sort of disruption or delay hampering performance.
Network densification is the process of expanding cellular connectivity in areas where the current network is unable to keep up with consumer demand, or, in areas where the network needs to be upgraded to support new technologies like 5G. This expansion is usually accomplished through the construction of new cell sites; however, equipment upgrades can also greatly improve both network coverage and capacity.
5G densification can mean a couple of things for landlords: first, for landlords who do not have a cellular lease, there may be an opportunity to obtain an agreement that could result in substantial revenue. Although the odds of entering into a new cell tower lease agreement with a tower company are slim to none, it does happen from time to time, and with 5G expansion efforts well on their way, it’s certainly something that landlords should be paying attention to.
In many cases, current cell sites will need to have their antennas upgraded or swapped out entirely, which is why it’s important that landlords understand what their rights are under their current lease agreement. It’s also important that landlords understand how the value of their cell tower lease will change once 5G equipment upgrades have been completed. Depending on the language of the cell tower agreement, landlords may be entitled to a greater amount of rent if, say, the site now houses every major carrier.
Landmark Dividend is one of the nation’s largest and most successful lease acquisition companies, and we specialize in helping landlords discover the true value of their ground lease agreement. Although monthly rental payments can provide landlords with a substantial amount of additional income, a cell tower lease buyout might provide substantially more value over both the short and long-term. Making use of a 1031 exchange, landlords can avoid the capital gains tax, so long as the transaction funds are invested into a like-kind property.
To learn more about cell tower lease buyouts and 1031 exchanges, please call us today at 800-843-2024 or
click here. There is never a cost or obligation to speak with us, and we’re here to provide you with straightforward information to help you make the best possible financial decision regarding your cell tower lease.