Sale-Leasebacks Surge As Companies Eye Ways To Raise Cash

More companies are becoming tenants in properties they previously owned in a bid to extract fast cash from their real estate.

Despite continued economic uncertainty plaguing the real estate sector, businesses are still finding creative ways to raise capital. Stabilizing interest rates and an increase in M&A have helped bring about a resurgence of sale-leaseback activity, in which a company sells a property and then leases it back from the buyer. 

“The stock market’s hitting new records all the time, so it is a weird environment we’re in,” said Scott Merkle, managing partner of SLB Capital Advisors. “The things that directly impact our world are interest rates. And also M&A activity. We are in a very conducive environment for sale-leaseback activity.”

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RSK: Sale/leasebacks have been increasing, an opportunity for real estate agents.