I’m sure most of you are familiar with 5G connectivity. 5G will not only be faster, but it will also serve as the backbone for driverless cars, safer surgical medical procedures, safe drone operation, less traffic jams on the streets and increased precision in manufacturing.
Think about how much progress has been made since 1G. 1G connectivity allowed us to talk on the phone using cellular towers. 2G added text messaging capabilities. 3G introduced internet capabilities. 4G made all of the previous features even faster. Now 5G is 150-200x faster than 4G and eliminates connectivity issues during large events.
However the 5G connectivity requires far more infrastructure than 1G-4G. The signal transmits a much shorter distance due to higher frequency and shorter wavelengths than previous technology. The signal can be much more easily blocked by large buildings and disrupted by severe weather. Therefore, the cell phone carriers must put transmitters on rooftops every few blocks rather than one large cell tower that is used for 1G-4G. This has created an incredible investment opportunity for real estate property owners as they can lease out their rooftops to the cell phone carriers. Based on our client’s contracts, an average rooftop can see cash flows averaging $3,000/month per carrier. With just 2 carriers, one rooftop could produce an extra $6,000 of passive income and the lease term could be 15-40 years. This is a great opportunity to look into, especially if your commercial buildings are dealing with lower than normal occupancy levels due to covid creating a strain on cash flow.
What kind of rooftop leasing do you currently utilize on your commercial real estate properties?
Thanks for letting everyone in on this! I know this is most applicable to inner cities as of now but will come to the suburbs soon! Do you leverage the different cell phone companies to get the best prices?
@Matthew Powell - Dish is giving the best deals right now, so we work to leverage our relationships with them. However, we also work with T-Mobile (merged with Sprint), Version, AT&T, and some local carriers.
Do you currently lease out your rooftops?