7/7/25 – SLB Capital Advisors discussed recent bank sale leasebacks with the Commercial Observer
Stewart Riggs, Principal at SLB Capital Advisors discussed recent bank sale leasebacks with the Commercial Observer
Why the sudden popularity of sale-leasebacks? The trend is driven by a combination of rising interest rates and midsize banks’ need for capital, said Stewart Riggs, principal at SLB Capital Advisors. “They can execute a sale-leaseback and put cash back on the balance sheet. The whole banking system is predicated on taking one dollar and lending out five – but you need the one dollar.”
Bankers have shifted their mindset around property ownership. While the best branches once were seen as prized possessions, bankers have begun to view physical locations differently, Riggs said. “Bricks and sticks is not what drives the profitability of a branch,” he said. “It’s the people inside the location.”
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