2022 Seen as Record Year for Sale-Leaseback Activity
February 6, 2023 – SLB Capital Advisors shared perspectives with Commercial Real Estate Direct regarding 2022 sale leaseback activity
- 2022 Seen as Record Year for Sale-Leaseback Activity
- Through the third quarter, 660 deals totaling $23.9 billion took place, according to SLB Capital Advisors of New York
- Capitalization rates, which determine the prices that investors pay for properties, have increased by roughly 100 basis points from last year, according to Scott Merkle, co-founder and managing partner of SLB. But the cost for most companies to borrow has increased substantially.
- “While all forms of capital became more expensive in 2022, the cost of sale-leasebacks did not rise as dramatically, and presented a much more attractive capital allocation tool,” [Merkle] said. On a relative cost of capital basis, he said, “it’s more attractive now than a year ago” to complete a sale-leaseback transaction.
- Read the full article here