I
n a groundbreaking deal, AT&T has shed 74 underutilized central office facilities across 23 states to Reign Capital in exchange for $850 million. The transaction, facilitated by JLL, marks a significant shift in the telecom giant's real estate strategy as it adapts to the evolving needs of its network infrastructure.

    As customers increasingly opt for fiber and wireless services, AT&T is streamlining its operations by leasing back only the space required for critical network equipment. This strategic move not only reduces power consumption but also frees up valuable real estate for other uses. The deal's unique structure allows AT&T to maintain exclusive operational control and protection of its network infrastructure.

    "The sale-leaseback transaction unlocks value in stranded commercial real estate, providing both upfront and long-term benefits through a revenue-sharing model," said Michael Ford, Senior Vice President of Global Real Estate and Security at AT&T. "This creative solution aligns with our broader company transformation initiatives."

    JLL's integrated teams played a crucial role in structuring the complex deal, which involved Capital Markets, Consulting, Value and Risk Advisory, and Work Dynamics. The transaction is part of a larger trend where telecom companies are reimagining their property portfolios to support next-generation network infrastructure.

    "The intersection of telecom innovation and real estate is driving a new wave of specialized transactions," said Lisa Vollmer, Executive Director and Head of JLL's Telecommunications Division. "Companies like AT&T are pioneering new approaches to unlock value in their property portfolios."