As we move further into 2024, the expansion of 5G networks is continuing to transform what internet-based products and services can achieve. From advanced autonomous vehicles to immersive augmented and virtual reality experiences, 5G is poised to bring about some of the most significant technological advancements since the birth of the internet.
With 5G networks becoming more widespread, we are entering a new phase of network infrastructure development. This has important implications for landlords. The deployment of 5G requires a massive increase in the number of cell sites, especially as demand for faster, more reliable connections continues to soar. 2024 will see an acceleration of this trend, as telecom providers work to densify their networks, creating opportunities for property owners.
5G networks promise speeds up to 100 times faster than 4G, but more importantly, they drastically reduce network latency. The near-elimination of latency allows for real-time communication between devices, making innovations like smart cities, remote surgeries, and machine-to-machine communication more practical and efficient. For this level of connectivity to be realized, however, network densification will continue to be critical.
Network densification involves expanding cellular connectivity, particularly in areas where current infrastructure can’t meet rising consumer demands or where new technologies like 5G require more capacity. While new cell sites are necessary for this process, equipment upgrades on existing towers can also significantly improve both coverage and network capacity.
For landlords, this densification presents potential financial opportunities. Those without existing cellular leases may be approached by telecom providers or infrastructure companies seeking new cell sites, particularly in underserved or high-demand areas. Though new cell tower leases can be rare, the rapid expansion of 5G in 2024 could bring more such agreements into play, making it a potential windfall for property owners in the right locations.
Landlords with existing cell sites are also in a prime position to benefit from 5G. Many current cell towers and rooftop installations will require antenna upgrades or replacements to support 5G technology, which can affect the value of existing leases. Depending on the terms of a landlord’s agreement, upgrades could entitle them to higher rent, especially if the site ends up supporting all major carriers after the upgrade.
At Landmark Dividend, we specialize in helping landlords maximize the value of their cell tower leases. While monthly rental payments from a cell lease can provide a steady income stream, a cell tower lease buyout could deliver more substantial financial benefits in both the short and long term. For many property owners, a buyout offers the flexibility to access a lump sum of capital now, which can be reinvested in other ventures or real estate through mechanisms like the 1031 exchange—allowing landlords to defer capital gains taxes by reinvesting in like-kind properties.
To learn more about cell tower lease buyouts and how a 1031 exchange can benefit you, contact us today at 800-843-2024 or
click here. Our team is ready to provide you with straightforward advice and help you make the best possible financial decision regarding your cell tower lease.