Rooftops for Rent: Monetize Your Property with 5G

The Growing Demand for Rooftop Real Estate in the 5G Era

The rollout of 5G infrastructure is creating a significant demand for unconventional locations, specifically the rooftops of various buildings. Restaurants, hotels, residential complexes, hospitals, and even churches are now highly sought-after properties by telecommunication companies.

These rooftops are rapidly transforming into valuable assets. Next-generation wireless deployments are projected to become a major source of lease revenue within the United States over the coming five years, presenting a considerable financial opportunity for property owners.

National Prioritization and the Infrastructure Bill

Expanding the nation’s 5G infrastructure is a key priority for the Biden administration. The $1.2 trillion bipartisan infrastructure package allocates $65 billion to broaden broadband access, particularly in rural and underserved areas.

Despite its superior speed and capabilities compared to previous wireless technologies, 5G has a limited range, typically extending only up to approximately 1,500 feet. This limitation necessitates a dense network of deployment sites.

Investment and the Rise of Small-Cell Sites

Beyond the established wireless providers, new players, including traditional cable companies and large technology firms, are entering the 5G deployment landscape. Collectively, these entities are expected to invest an additional $275 billion in deploying both macro and small-cell 5G sites.

Leveraging existing buildings is the most practical and cost-effective method for establishing the extensive network of sites required for 5G coverage. A rooftop deployment strategy is therefore becoming increasingly essential.

Challenges and Opportunities for Property Owners

Navigating the wireless communications market has historically presented difficulties for real estate and business owners. Past agreements between carriers and property owners often lacked favorable terms for the latter.

Building new towers frequently encounters community resistance, and the associated construction, zoning, and permitting processes can be lengthy. However, 5G technology is particularly well-suited for deployment on existing rooftops due to the lower antenna heights required.

A Mutually Beneficial Partnership

A rooftop deployment strategy offers a win-win solution for both 5G carriers and property owners. Carriers can rapidly deploy infrastructure in high-traffic areas, while property owners can generate revenue by leasing their rooftops and unlocking new monetization opportunities.

This arrangement can significantly impact a real estate owner’s net operating income. The revenue generated from a potential 30-year lease can substantially improve access to capital.

Additional Benefits for Landlords

Beyond lease payments, landlords can enhance tenant services by providing high-speed broadband connectivity. This added amenity can attract and retain tenants, further increasing property value.

5G rooftop deployments represent a significant shift in the wireless infrastructure landscape, offering substantial financial benefits to property owners and accelerating the expansion of next-generation wireless technology.

The Critical Importance of the 5G Deployment Race

Maintaining international competitiveness necessitates the rapid deployment of 5G infrastructure within the United States. Beyond simply offering faster connections, increased capacity, and reduced latency, 5G is a key driver of innovation.

This innovation will facilitate advancements across numerous sectors, including autonomous vehicles, telehealth expansion, manufacturing efficiencies, agricultural improvements, and optimized supply chain management.

The economic impact of 5G is projected to be substantial, with expectations exceeding $1.5 trillion in contribution to the U.S. GDP by the year 2025.

5G as an Economic Equalizer for Rural America

The Biden administration recognizes 5G technology and widespread broadband access as vital tools for economic equity, particularly in rural communities. Current data indicates that rural Americans are significantly more likely – over ten times – to lack reliable internet access compared to their urban counterparts.

The recently enacted infrastructure law prioritizes investments in rural broadband infrastructure to address this digital divide and extend internet access to previously underserved regions.

Consequently, property owners with holdings in rural areas are poised to potentially benefit significantly from the expansion of 5G infrastructure.

Cybersecurity Considerations in 5G Deployment

Establishing a robust 5G network nationwide will be a prolonged process. Property owners collaborating with 5G providers and wireless carriers should be fully aware of the cybersecurity implications associated with hosting this infrastructure and offering the network to tenants.

Recent surveys, such as one conducted by Aon involving over 2,300 risk managers and executives, consistently identify cyber risk as the foremost current and future global concern.

As connectivity increases with the advent of 5G, the cybersecurity sector must continually innovate, leveraging machine learning and artificial intelligence to bolster defensive capabilities.

Organizations like Building Cyber Security are emerging to provide guidance and frameworks for enhancing cybersecurity resilience within the real estate industry.

Facilitating 5G Deployment and Revenue Opportunities

To effectively capitalize on their properties and participate in the 5G rollout, collaborative efforts between government and private industry are essential. This includes accelerating the deployment of 5G infrastructure and streamlining the review process for installation requests.

Further improvements are needed at the state and local levels to optimize zoning and permitting procedures for 5G antenna deployment. Many state legislatures are currently evaluating legislation to develop comprehensive 5G strategies for their constituents, creating potential opportunities for landlords.

While ongoing policy and technical work is required, the potential for revenue generation for property owners is both immediate and concrete. For businesses like restaurants and hotels recovering from the economic impacts of the COVID-19 pandemic, monetizing rooftop space could be crucial for profitability.