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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