Verizon's High-Rent Relocation Plan Puts Pressure on American Tower

Verizon is launching a high-rent relocation program targeting American Tower, its largest tower landlord, ahead of a key master lease expiration. Analyst Jonathan Atkin downgraded American Tower's stock rating from Outperform to Sector Perform and lowered the price forecast from $260 to $220. Colocation activity has picked up, but carrier activity remains muted with T-Mobile driving colocations to meet FCC buildout rules, while Verizon and AT&T continue network upgrades with only incremental leasing revenue.

Verizon Communications (NYSE:VZ) has initiated a high-rent relocation program, specifically targeting American Tower (NYSE:AMT), its largest tower landlord, ahead of a key master lease expiration. This move comes amidst muted carrier activity and increasing colocation activity in the United States.

American Tower's growth outlook remains tied to carrier activity, with T-Mobile US (NASDAQ:TMUS) driving colocations to meet Federal Communications Commission (FCC) buildout rules. Verizon and AT&T (NYSE:T) continue network upgrades that bring only incremental leasing revenue. Colocation activity has picked up, but American Tower faces pressure from Verizon's high-rent relocation program Verizon Targets American Tower With Expensive Relocation Plan, Analysts Warn^[1].

RBC Capital analyst Jonathan Atkin downgraded American Tower's stock rating from Outperform to Sector Perform and lowered the price forecast from $260 to $220. Atkin reported that carrier activity across the three major U.S. tower companies remained muted through the third quarter of 2025. He highlighted T-Mobile as the most active carrier, pushing colocations and amendments to meet its FCC-mandated buildout requirements by the first quarter of 2026. Verizon, Atkin noted, continues to focus on mid-band spectrum coverage and capacity, while AT&T appears on schedule, or slightly ahead, with its network modernization Verizon Targets American Tower With Expensive Relocation Plan, Analysts Warn^[1].

According to commentary from American Tower and SBA Communications (NASDAQ:SBAC), colocation activity picked up in the third quarter. Crown Castle (NYSE:CCI), meanwhile, reported a steadier mix of amendments and colocations, with amendments outweighing colocations by volume. Atkin expects fixed wireless access deployments to grow more capital-intensive over time, driving further network densification and cell splits, which should lift colocation revenues Verizon Targets American Tower With Expensive Relocation Plan, Analysts Warn^[1].

Verizon's high-rent relocation program is seen as a strategic move to secure favorable lease terms before American Tower's master lease with Verizon expires within two years. This initiative is expected to have a significant impact on American Tower's financial performance. Despite slight increases in financial estimates, Atkin lowered his price forecast on American Tower, explaining that the new valuation better reflects historical tower and datacenter REIT multiples in the current rate environment, along with ongoing carrier spending constraints following spectrum acquisitions. Adjustments also reflect contributions from DISH leases Verizon Targets American Tower With Expensive Relocation Plan, Analysts Warn^[1].

American Tower shares were trading lower by 1.01% to $191.38 at last check on Thursday. The company's stock price has been affected by the high-rent relocation program and the downgrade in stock rating by analyst Jonathan Atkin Verizon Targets American Tower With Expensive Relocation Plan, Analysts Warn^[1].