AT&T’s $850 million sale-leaseback deal serves as model for future transactions

Summary: AT&T has sold over 13 million square feet of underutilized real estate to Reign Capital for more than $850 million in a sale-leaseback deal. The transaction involves 74 central offices across 23 states, which were originally built for outdated copper networks but are now only 35% utilized due to the shift to fiber and wireless systems. This strategic move allows AT&T to streamline its real estate portfolio while maintaining operational control of necessary spaces and securing a share in future redevelopment revenues. The deal, which closed on January 8, 2025, is part of AT&T’s plan to exit most of its legacy copper network operations by 2029 and serves as a model for future real estate transactions.