Sale Leasebacks & Synthetic Leases

Overview

Often used as a financing alternative, sale-leasebacks offer financially struggling companies access to cash to pay down debt and improve the bottom line. Find out how sale-leaseback transactions have helped the balance sheets of hotel, restaurant, retail, and other businesses.

What is a Sale-Leaseback

References

We've already done the research for you. References (formerly Field Guides) offer links to articles, eBooks, websites, statistics, and more to provide a comprehensive overview of perspectives. EBSCO articles (E) are available only to NAR members and require a password.


Benefits of Sale-Leasebacks

  • Reinvest in the company
  • Retire debt
  • Improve credit rating
  • Increase productivity
  • Make an acquisition
  • Get a better return on capital investment
  • Avoid negative impact from depreciation on the financial statement

Source: Right now sale/leaseback may be the only option to obtain cash and a healthier balance sheet, (ITRA Global, Oct. 12, 2009)

About Sale-Leasebacks & Synthetic Leases 

What Is Sales Leaseback, (Kelly Summers via YouTube, Aug. 22, 2014)

The Science of the Sale-Leaseback, (W.P. Carey Inc. via YouTube, Nov. 11, 2014)

Sale-Leaseback Strategies: Maximizing Value, (Calkain Companies, n.d.)

Sale/Leaseback Transactions Moving Full Steam Ahead, (Mondaq, July 2, 2014)

Understanding Sale and Leaseback, (SSRN Working Paper Series, June 2014)

Sale-Leaseback Solutions: Examine the Business and Tax Considerations of These Transactions, (CCIM Institute, n.d.)

Advantages of Sale-Leasebacks

Corporate Leasebacks on the Rise, (NJBIZ, Feb. 16, 2015) E

Real Estate Sale-Leasebacks: What's the Attraction of the Net Lease Arrangement? (CIRE Magazine, n.d.)

Making the Most of Sales and Leasebacks, (Franchising World, July 2012) E

Sale-Leasebacks Provide Capital for Core Business Investment, (CCIM Institute, n.d.)

Hotel & Restaurant Property Leasebacks

 How QSR Franchisees Can Benefit from Sale-Leaseback Financing, (Broadstone Real Estate, LLC, Jun. 23, 2015)

Government Property Leasebacks

Plan to offload $250 million worth of State Government-owned CBD property, (News.com.au, Nov. 23, 2014)

Wind Farm Tax Credits Warrant Deeper Look, (Courthouse News Service, July 23, 2014)

Catalonia Sells and Leases Back Barca Office, (EuroProperty, July 9, 2012) E

Healthcare Property Leasebacks

Why leverage third party capital in healthcare real estate? (Becker’s Hospital CFO, Apr. 22, 2015)

REITs See $350 Billion Hospital Property Market as Prescription for Growth, (CoStar, Apr. 8, 2015)

Ventas places $1.75 billion bet on Ardent as healthcare real estate market booms, (Modern Healthcare, Apr. 6, 2015)

Sale-leasebacks accommodate buyer and seller in today’s healthcare real estate market: 7 reasons why they work, 5 pitfalls to note, (DLA Piper, Oct. 22, 2014)

Molina Healthcare Announces $158M Sale/Leaseback, (National Real Estate Investor, June 17, 2013)

Articles, Surveys & More From NAR

—Find all of NAR's Commercial Real Estate Research here

—Find an index to all NAR Research here

Expectations & Market Realities in Real Estate 2018, (National Association of REALTORS®)

Commercial Real Estate Lending Trends 2017, (National Association of REALTORS®)

Commercial Real Estate Outlook (National Association of REALTORS®)

The Commercial Real Estate Outlook is NAR's flagship commercial research publication. It is produced quarterly and includes the latest market information on five major commercial real estate sectors — industrial, office, multi-family, retail and hospitality real estate.

eBooks & Other Resources

eBooks.realtor.org

The following eBooks and digital audiobooks are available to NAR members:

The Art of Commercial Real Estate Leasing (Kindle, Audiobook, eBook)

Complete Book of Real Estate Leases (eBook)

Investing in real estate with lease options and "subject-to" deals (Kindle, eBook)

The Leasing Process: Landlord and Tenant Perspectives (eBook)

Leasing Administration Simplified (Kindle, eBook)

Negotiate the Best Lease for Your Business (eBook)

Books, Videos, Research Reports & More

The resources below are available for loan through Member Support. Up to three books, tapes, CDs and/or DVDs can be borrowed for 30 days from the Library for a nominal fee of $10. Call Member Support at 800-874-6500 for assistance.

Real estate investors deskbook, (Boston, MA: West Group, 2011) HG 4521 Ar6Re

Commercial lease law answer book, (New York, NY: Vendome Group, 2008) KF 593 C6

Managing and leasing commercial properties, (New York, NY: Wiley, 2007) HD 1394 AL2ma

Real estate finance: theory and practice, (Mason, OH: Thomson Southwestern, 2003) HG 4029 C57 Ed. 6

Real estate sale/leaseback: a review of the advantages and disadvantages, (Washington, D.C.: Society of Office and Industrial REALTORS®, 1993) HD 1384 So1


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The inclusion of links on this page does not imply endorsement by the National Association of REALTORS®. NAR makes no representations about whether the content of any external sites which may be linked in this page complies with state or federal laws or regulations or with applicable NAR policies. These links are provided for your convenience only and you rely on them at your own risk.

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