Verizon Wireless is one of the premier wireless communication brands across the United States.
Verizon’s real estate offerings follow the same general trend. Most locations sit on premier real estate with incredible visibility along high traffic retail corridors with a preference for 4,000 square foot buildings. Land requirements tend to vary between 0.80 to 1.2 acres. Verizon Wireless locations tend to have a 10 year lease in a freestanding location, however landlords and developers usually have to concede to one of a variety of early termination options. These options vary from termination in year five to seven of the lease, however the use of that option will often allow the landlord the right to recover an additional year's rent.
Other terms within the lease almost exclusively require the landlord to maintain and repair the roof and structure(NN leases). In contrast to the burdensome lease language regarding landlord obligations and early termination options, Verizon Wireless provides credit, with the parent company rated BBB+ by Standard and Poor's with a stable outlook. Knowing the corporate parent is creditworthy provides a level of safety, however the actual tenant on the lease varies, as Verizon utilizes a series of Limited Partnerships to secure real estate in different regions, along with other assets such as communication hardware, licenses, and cell towers.
Many retailers are seeing their business and real estate model drastically change with the advances in technology, however Verizon remains stable in their needs for class A retail locations to serve as showrooms for their various phone and tablet offerings. As their offerings continue to expand, this should serve as a further assurance that this retail tenant will continue to evolve and maximize the opportunities available within a brick and mortar showroom.
Verizon Wireless began as a joint venture between US telecommunications firm then Bell Atlantic, now Verizon Communications and UK multinational mobile network operator Vodafone, with a 55 and 45 percent ownership respectively. In 2014, Verizon Communications bought out Vodafone’s stake. Verizon's network covers over 98% of the US population. Verizon is currently #19 the Fortune 500 list with revenue of over $130 Billion.