March 17, 2025 – SLB Capital Advisors cited in Commercial Real Estate Direct’s Review of 2024 sale leaseback activity
Sale-leaseback transaction volume jumped in last year’s fourth quarter by 71% to $4.2 billion, according to SLB Capital Advisors.
SLB Capital, of New York, which advises companies on how to extract value from their real estate assets, noted that conditions in the sale-leaseback arena remain favorable, as capitalization rates for net-leased properties remain lower than borrowing costs for most companies.
SLB Capital noted that M&A activity was up 8.8% last year from the $1.9 trillion of activity recorded in 2023. But volumes started slowing in the fourth quarter, driven by a decline in take-private transactions as high public-market valuations served as a brake on the market
“We have continued to see multiple large sale-leasebacks early in 2025,” explained Scott Merkle, managing partner of SLB Capital. “Large corporates have been tapping this market for a wide variety of reasons, including the attractive cost of sale-leaseback capital compared to other financing alternatives.”
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