We’re humbled to reach the milestone of 16 years in business. As we commemorate this achievement, we take this moment to reflect on the evolution of the wireless real estate industry and the remarkable growth we have experienced since our inception in 2007 (the year of the iPhone!). And with renewed enthusiasm, we set our sights on making an even greater impact on the industry in the next 16 years.
First, I want to extend my heartfelt gratitude to our team and the thousands of site owners partners we’ve transacted with and continue to support. I also want to thank our valued telco customers for their collaboration over the years in building and enhancing their network infrastructure. At TowerPoint, we are proud to have 50+ colleagues in our Atlanta, New York and San Diego headquarters, and across the United States. Together we have successfully deployed nearly $2 billion in capital across diverse sectors, including commercial real estate, private property, public sector, faith-based, and non-profit organizations. Through it all, we’ve maintained an unwavering focus on fostering enduring relationships with site owners and acting as stewards of their real estate property assets, well beyond the transaction. In turn, we have been able to support the local business owners by preserving the value of the underlying real estate and providing capital to reinvest in the community – all of which has given rise to an entirely new asset class in Wireless Real Estate.
As we celebrate our 16th anniversary, we’re reflecting on the key learnings that have helped us achieve our success. Here are four of the most important:
1. Demand is resilient and strong.
Throughout our history, the demand for wireless infrastructure has remained robust, even through economic downturns and following decades of mass consolidation. This enduring demand stems from the fact that wireless connectivity is essential for businesses and individuals alike and this trend shows no signs of slowing down. Globally, communication and data infrastructure will continue to heavily rely on terrestrial assets to meet society’s ever-growing connectivity needs. In turn, we anticipate even greater demand ahead as the world becomes increasingly interconnected and dependent on reliable wireless communication.
2. Value has evolved and continues to grow.
Over the past decade and a half, wireless infrastructure values rose steadily at 3-5% per year, effectively doubling by the end of 2022. A significant factor contributing to this rise is the consolidation of large portfolios of individual sites, which has not only established an asset class but also cultivating global institutional demand, aptly termed “The Portfolio Effect”.
At TowerPoint, we’re proud of the central role we’ve played in fostering this phenomenon. Through the diligent assembly and optimization of high-quality portfolios that consistently outperform the market, a virtuous cycle has emerged leading to rising value for site owners, carriers, tower companies and investors alike.
As demand for wireless real estate continues to rise, site owners can expect supporting real estate values to remain steady, provided dynamic portfolio companies like TowerPoint continue to execute their growth plans. We remain focused on delivering investment opportunities to institutional end users such as pensions, insurance companies, sovereign wealth funds, and others seeking exposure to high-quality US-based digital infrastructure assets.
3. Rising demand has provided site owners with significant capital to reinvest in superior opportunities more relevant to their specific needs.
Our success over the past 16 years has driven demand further than we ever imagined. This dynamic has allowed thousands of diverse site owners to take advantage of large infusions of capital in pursuit of their financial goals.
- Commercial real estate and business operators have reinvested capital into more CRE assets and are increasingly using proceeds to pay down debt or reinvesting back into their core business while optimizing their tax position.
- Private property owners have successfully diversified into real estate, second homes, and, in some cases, diversified securities including stocks and bonds.
- Municipalities have been able to fill budget shortfalls, maintain credit ratings, and avoid resorting to painful bond issuances and tax increases to fund projects.
- Faith-based and non-profit organizations have funded transformative capital improvements, including property and facility expansions while taking pressure off their donor base.
Through our shared commitment to the surrounding communities, we’ve helped our site owners lighten the ongoing burden of managing non-core assets, while proactively identifying opportunities to preserve and enhance their property values.
4. The runway remains robust, and for many it comes down to timing and circumstance.
There remains a massive amount of opportunity in the wireless infrastructure market, but it’s important to understand both the market and the timing. Not every site owner is an immediate fit for selling their sites – some may need to wait for an opportune time for the use of funds to materialize. It’s our job to demystify our role in the industry and help site owners understand the reasons behind the opportunity to sell. And, when the time is right for them, show them why so many site owners have chosen to sell to TowerPoint.
We’re excited to see what the next 16 years bring for TowerPoint. We’re committed to continuing to grow and innovate, and we’re confident that the best is yet to come.
Jesse M. Wellner
Chief Executive Officer
TowerPoint
