On Friday, AT&T announced that it has secured $850 million by selling and leasing back its underutilized central office facilities that house its outdated copper networks to real estate development firm Reign Capital.

The company plans to phase out a majority of its copper network operations by 2029 due to customers transitioning to more advanced technologies like fiber optics and wireless networks, which offer higher speeds and reliability while requiring less space.

The sale-leaseback arrangement involves AT&T selling a portion of its assets to raise funds and then leasing back only the necessary space for its network operations.

Michael Ford, the Global Real Estate Head at AT&T, stated that the deal structure unlocks value in otherwise stranded commercial real estate space.

The deal, completed in early January, encompasses the transfer of 74 properties nationwide, impacting a small fraction of AT&T's central office portfolio without affecting jobs or service modifications.