Recent news articles have indicated that sale-leasebacks will pick up as time goes on in today's current economic environment. There is still significant corporate interest in sale-leasebacks as a capital generation and balance sheet management tool. While volume of commercial real estate transactions have recently been down as recently noted by various data services such as New York City-based Real Capital Analytics, sale-leasebacks were actually accounting for a greater portion of the overall commercial property sales market. Why so?
Sales-leasebacks can be a great financing tool in today's market! Why have your cash locked up in real estate when it can be employed in the business which can provide a higher rate of return. In addition, the cash can be used to expand business operations, purchase other companies when the price may be lower, retire and/or buyout partners, reconfigure bank debt, increase further borrowing capacity, improve balance sheet ratios or just keep the business going in today's economic environment. One example of a sale-leaseback is http://sale.svn.com/schaller.
There may be opportunities to make a deal in this more difficult market. Feel free to join our new Net Lease and Sale Leaseback Group on CREPIG! https://crepig.ning.com/