Heading into the back half of 2025, significant questions remained around tariff clarity, recession risk, and the timing of a broader M&A rebound, though sale leaseback capital continued to stand apart from other capital sources by remaining consistently available at attractive pricing throughout the uncertainty. Middle market deal volume softened in the first quarter, even as average valuations climbed to their highest quarterly level since mid-2022, a dynamic that helped sustain a favorable arbitrage between business and real estate multiples. Against this uncertain macro backdrop, sale leaseback capital was expected to remain a reliable and attractively priced option for the remainder of the year and beyond.
