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T&T has completed a deal with real estate development firm Reign Capital, transferring ownership of 74 properties to the company while leasing them back. The transaction, which closed two weeks ago, involves over 13 million square feet of commercial space across the US and generates $850 million in cash for AT&T. As part of the sale-leaseback arrangement, AT&T will pay rent on the properties it needs to maintain operational control.

    The deal makes sense for AT&T due to the underutilized nature of its central offices, which house equipment for copper networks that are becoming obsolete with the rise of fiber and wireless networking. The company plans to exit most of its legacy copper network operations by the end of the decade. In a unique aspect of the deal, AT&T will participate in the financial benefits of any redevelopment projects Reign initiates on the properties, ensuring its operational needs are met.

    This is not AT&T's first foray into sale-leaseback deals; it previously partnered with Reign on a similar arrangement involving 13 properties and over 3 million square feet, generating $300 million in upfront cash. The deal structure allows AT&T to unlock value from its commercial real estate holdings without sacrificing control of the space it needs.