November 11, 2024 – SLB Capital Advisors’ perspectives on the sale leaseback market cited by WSJ in Dow Jones Market Talk
The Federal Reserve’s latest interest-rate cut is likely to foster sale leasebacks, or deals in which investors buy a property and immediately lease it back to the seller, as such transactions are commonly used to support buyouts, Scott Merkle, managing partner at real estate-focused SLB Capital Advisors, says in a market note.
“A rate reduction would further accelerate the likely coming rebound in [mergers and acquisitions], with improving debt pricing for private equity and corporate acquirers, as well as an even more attractive cost of sale leasebacks,” Merkle says.
