Higher Interest Rates Fuel Sale Leaseback Activity
February 21, 2023 – SLB Capital Advisors cited by Wealth Management in review of Net Lease space
SLB Capital Advisors’ Managing Partner Scott Merkle cited by Wealth Management in review of net lease market.
“The big story in the sale leaseback space in 2023 is that, on a relative cost of capital basis, sale leasebacks are even more attractive now than they were 12 months ago, even though cap rates have risen,” said SLB Capital Advisors managing partner Scott Merkle.
“On a relative basis, even though cap rates have expanded from the record lows of a year ago, the pricing on sale leasebacks is still that much more attractive compared to other forms of raising capital right now,” said Merkle.
“[Buyers] are being selective, but they are being appropriately aggressive when they want to win an opportunity that they feel is a good fit for their investment platform,” said Merkle.
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