SLBs Are Key to Unlocking Value

More corporations are turning to sale-leasebacks as an alternative for managing and financing the buildings they occupy.  The upside—from unlocking the full value of the asset in a cash equivalent, to lease structures that qualify as operating leases so the expense stays off the company’s balance sheet, to optimizing lease payments to keep rents lower—is too appealing for many corporate real estate users to pass up in the current economy.

Although sale-leasebacks aren’t right for every company, billions of dollars worth of sale-leaseback transactions will close in 2014. These strategies may change and challenges are sure to arise, but industry watchers expect to see many corporations explore the possibilities of unlocking real estate value in what is still historically a low-interest rate and low cap rate environment.