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The 5G transformation could boost retail properties ![]() ![]() The national build-out of the 5G wireless network is under way, and with it, of course, comes the promise of speedier, more-reliable network connectivity. Cutting the time it takes to download a movie to 30 seconds from three hours; advancing the technology of driverless automobile development; and enabling holographic calls are just a few of the advances expected over the next several years. But what do the changes mean for shopping center landlords at a time when mobile phones have become a part of the shopping experience? A lightning-fast network will immediately enhance the abilities of retailers and property owners with tech-driven reward or tracking programs to connect instantly with shoppers, says David Moore, a senior vice president at Ontario, Calif.-based NAI Capital Wireless, which represents property owners in cell-tower and infrastructure leases. The enormous growth of data crisscrossing today's 4G wireless network is at a logjam, slowing or impeding connections and such functions as the downloading of coupons, he notes. "5G will better integrate the shopping experience and retail environment," Moore said. "But that's provided that the system at the retail or mall level can handle it." Indeed, the way 5G operates means that it is less likely to penetrate walls or perform inside buildings lacking an adequate communication infrastructure. This is because 5G works on very high frequencies with short wavelengths - the key behind those fast speeds. But this also means that the wireless signal can travel only a short distance compared to 4G, and that it has a harder time getting through obstacles. "The rollout of 5G could give shopping centers leverage to generate extra revenue from leases that tie into the wireless network." Consequently, the distance between a mobile device and the equipment that transfers the signal must be much narrower than today, which will require not only additional towers, but also systems that serve "small cells" - small geographic areas, including the building interiors, that enhance the network's coverage. A digital antenna system (DAS), for example, is a network of antenna nodes for transmitting a wireless signal and is often used to cover small cells. Though many shopping centers lease rooftop space for towers and include systems such as DAS to serve small cells, the change to 5G could disrupt the shopping experience if there are insufficient nodes or sensors distributed across the property, Moore says. If that is the case, it is the responsibility of the wireless carriers or third-party providers of cell towers and other infrastructure to remedy the situation as they upgrade the systems to 5G, says Hugh D. Odom, founder and president of College Grove, Tenn. -based Vertical Consultants, which negotiates cell-tower leases on behalf of property owners. Moreover, the rollout of 5G could give shopping centers leverage to generate extra revenue from leases that tie into wireless networks, Odom says. Like an oil-field producer that deploys new drilling techniques to increase the volumes of oil extracted from a property it leases, upgrading to 5G will allow carriers to use shopping center sites to deliver more value to their mobile customers, he explains. | ||||
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