Another Option for Owner-Users
Hughes Marino’s award-winning tenant representation team has the insight and expertise to handle lease and purchase contracts of all sizes and complexities. A very common, yet not well understood commercial real estate transaction is the sale-leaseback, which is a transaction that involves an owner-user selling their real estate asset to private and institutional purchasers, and then leasing back the property as a tenant.
Our team of brokers at Hughes Marino have access to over 72,000 contacts which provide access to private and institutional capital, and our extensive experience has proven to be beneficial for businesses looking to unlock capital from their real estate.
Here are just a few of the details our professionals can help you take into consideration:
- What is my property worth?
- Which real estate assets should my business leaseback?
- How do I market my sale-leaseback property?
- When is the right time to sell?
- Will this support and enhance my business?
- What will my rent cost?
- How do I negotiate a lease that is most appropriate for my company?
Advantages of a Sale-Leaseback in Commercial Real Estate
- Turns illiquid equity into deployable capital
- In most cases, business rent is fully deductible for tax purposes
- There are no interest costs associated with borrowing against the property’s equity
- A lease offers future cash flow visibility
- There may be ways to minimize capital gains liabilities through a 1031 Exchange or Opportunity Zone investments
- Provides opportunities for a company to reduce their premises size if applicable
If a sale-leaseback is something you’d like to consider for your business, please reach out to our team for more information on this option.