May 1, 2026 – SLB Capital Advisors featured in PERE’s coverage of rising sale leaseback momentum
The investor universe continues to have very strong demand, says Matt Wrobleski, partner at sale leaseback specialist SLB Capital Advisors. “The demand of sale leasebacks is far outpacing the supply, a theme over the last two years that is continuing.
Because of the increased demand from investors looking for sale leasebacks and net lease deals, they’re keeping cap rates lower and taking less spread today than they have historically,” Wrobleski says. “A sale leaseback compared to alternative forms of capital is really efficient and cost effective right now because it’s inside the cost of debt for a lot of companies, especially in the mid-market.
For most sale leaseback transactions, often skewed toward mid-market businesses, the metrics that matter most are fixed charge coverage, leverage and liquidity runway, Merkle adds. Fixed charge coverage tends to be the primary lens. It speaks most directly to whether a business can service its obligations, including rent, over the life of a long-term lease.
As tenant risk rises, the underlying real estate serves as the ultimate safeguard in net lease and sale-leaseback deals. Merkle notes that in net lease underwriting, credit and real estate are evaluated together, but their relative weight shifts dramatically depending on the asset.
Read the full article here