The sale-leaseback transaction, nearly dormant in 2020, is coming back in vogue as investors search the pandemic-riddled landscape for yield while cash-strapped tenants hunt for capital infusions.
Often parties with these two convergent interests find a solution in sale-leaseback transactions, or deals where businesses sell off properties to commercial real estate investors and then lease the same spaces back as tenants. I would say the current backdrop is incredibly conducive for sale-leasebacks right now, SLB Capital Advisors Managing Partner Scott Merkle said. I would go as far as to say the market is really on fire.
Sale-leaseback activity picked up in the past several months after declining during the coronavirus pandemic. The deal type reached a trough in the third quarter of 2020 and then rose again with data from SLB Capital showing there was $3.1B worth of sale-leaseback activity nationwide in the fourth quarter of 2020, up from just shy of $2B in Q3 and $2.7B i