April 1, 2026 – Independent Banker tapped SLB Capital Advisors for views in its Q&A regarding sale leasebacks in the community bank space
Independent Banker spoke with SLB Capital Advisors’ Managing Partner Scott Merkle for views in its Q&A regarding sale leasebacks in the community bank space
The banking sector has seen a surge in sale leaseback transactions over the past three years, particularly among regional and community banks. According to data from SLB Capital Advisors, the volume of sale leasebacks initiated by financial institutions jumped from $125.3 million in 2023 to $255.6 million in 2024 and more than $825 million in 2025.
“A lot of banks are sitting on a ton of owned real estate and have some good optionality in terms of what they want to monetize,” says Scott Merkle, Managing Partner at SLB Capital Advisors, a New York City real estate firm that specializes in sale‑leasebacks.
“Banks are able to bring in a meaningful slug of capital that they can then lend out to create a multiplier effect,” says Merkle. Also, money raised from a sale leaseback is Tier One capital that comes in without restrictions.
Sale leasebacks are often more “art than science,” with pricing that is influenced more by how a deal is structured rather than appraised property value, notes Merkle. The amount of base rent, schedule of rent increases over time and the length of the lease term are all factors that influence pricing. Aside from the quality and location of the real estate, the credit quality of the bank is an important factor in attracting investor interest and establishing value.
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