WHAT IS IT

The fifth generation [5G] of cellular technology is quickly becoming the infrastructure of choice for carriers, customers, and field applications alike. Once available, data processing speeds will be roughly 10-20X faster than current technology. As an edge-computing infrastructure, enormous quantities of data will soon be processed right where the data is created and consumed, with virtually no lag time. With exponentially faster “real-time” data processing capabilities, the multi-directional data communication of the Internet of Things [IoT] will suddenly become commercially viable and scalable in ways most people cannot yet appreciate.

HOW IT WORKS

Like its predecessors, 5G will use radio waves to transmit encoded data to various cell sites. Initially, 5G is expected to be integrated into already existing 4G networks and will operate on three spectrum bands (low-, mid-, and high-band).

WHY USE IT

CRE professionals with older cell technology tower leases on their property may need to rethink valuations and tenant viability. 5G requires many new micro-data center locations—about the size of two parking spaces—which could be a monetization opportunity for brokers and their clients. Likewise, as this technology ushers in an era of extreme real-time commercial-grade computing, business models will adapt, leading to new real estate requirements such as autonomous vehicle fleet maintenance facilities. And so on.