2022 Sale Leaseback Volumes Break Record
March 17, 2023 – The latest sale leaseback market update, compiled and published by SLB Capital Advisors, showed record breaking sale leaseback volumes for 2022
Total U.S. sale leaseback volume of 874 unique transactions during 2022 exceeded the prior record volume of 789 in 2021.
Sale leaseback transaction count for 2022 was 11% greater than prior highs reached in 2019 and 2021. Total dollar volume of $31.4 billion also set a record, besting the 2019 volume of $27.6 billion by 14%.
“Robust 2022 dealmaking was driven by multiple factors including the prior year’s record M&A activity, buyers’ strong appetite to deploy capital, and the sale leaseback’s attractive cost compared to other forms of capital,” according to Scott Merkle, Managing Partner of SLB. Merkle noted that while rates on high yield bonds and corporate debt have risen >400 bps, in contrast, increases in the cost of sale leaseback transactions (as measured by cap rates) were more muted, widening approximately 100-150 basis points.
To read the press release, click here.