What’s a…Sale/Leaseback?

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Maggie Collister

What’s a…Sale/Leaseback?

Ready to cash in on the market’s favorable pricing – but concerned you won’t be able to find a new space for your business if you do? Or are you simply looking for extra funds to expand your operations?

A sale/leaseback can allow you to sell your building while maintaining operating space for your business. That means keeping your operations running full steam ahead while you plan for the next strategic move.

Entire Lease Payments Are 100% Tax Deductible

Unlike a mortgage payment which allows your company to deduct only the interest expense from your payment, your lease payment is 100% tax deductible.

Availability To Free Up Capital For Your Business

Rather than having your capital tied up in real estate, companies taking advantage of sale/leasebacks can put their equity to use by reinvesting in their business, enhancing company growth, development and profitability.

Company Is Not Tied To A Property

As a tenant instead of an owner/occupant, in particular with anticipated growth and expansion needs, your company is not tied down to a facility and will have the opportunity to relocate to a newer facility with modern building features at the conclusion of their lease term without having to deal with a facility that may no longer be suitable for your needs.

Higher Value Of Property – Occupied Vs. Vacant

In the event a company no longer has use for its facility, finding a replacement tenant to pay a premium for a vacant building is unlikely. As an investment sale, the property’s highest value can be achieved, particularly under a long-term lease scenario.

Demand/Competition = Higher Sale Prices

The demand for investment product today has created a competitive environment among buyers to the benefit of sellers. As a result, the competition is pushing cap rates lower and sale prices higher than traditionally would be achieved.

Contact Kara Hogan for more details on how a sale/leaseback could work for you.

Matt Mellott
Matt Mellott, CCIM/SIOR

What’s a…Sale/Leaseback?

Ready to cash in on the market’s favorable pricing – but concerned you won’t be able to find a new space for your business if you do? Or are you simply looking for extra funds to expand your operations?

A sale/leaseback can allow you to sell your building while maintaining operating space for your business. That means keeping your operations running full steam ahead while you plan for the next strategic move.

Entire Lease Payments Are 100% Tax Deductible

Unlike a mortgage payment which allows your company to deduct only the interest expense from your payment, your lease payment is 100% tax deductible.

Availability To Free Up Capital For Your Business

Rather than having your capital tied up in real estate, companies taking advantage of sale/leasebacks can put their equity to use by reinvesting in their business, enhancing company growth, development and profitability.

Company Is Not Tied To A Property

As a tenant instead of an owner/occupant, in particular with anticipated growth and expansion needs, your company is not tied down to a facility and will have the opportunity to relocate to a newer facility with modern building features at the conclusion of their lease term without having to deal with a facility that may no longer be suitable for your needs.

Higher Value Of Property – Occupied Vs. Vacant

In the event a company no longer has use for its facility, finding a replacement tenant to pay a premium for a vacant building is unlikely. As an investment sale, the property’s highest value can be achieved, particularly under a long-term lease scenario.

Demand/Competition = Higher Sale Prices

The demand for investment product today has created a competitive environment among buyers to the benefit of sellers. As a result, the competition is pushing cap rates lower and sale prices higher than traditionally would be achieved.

Contact Kara Hogan for more details on how a sale/leaseback could work for you.