Continuing strong fundamentals, including low interest rates, outperformance in net lease REIT equities, and an over-active M&A market, made for what SLB Capital Advisors described to the Wall Street Journal as "the singular best moment to execute a sale leaseback" in the firm's collective experience, a dynamic expected to hold through the end of 2021 and into early 2022. Industrial properties continued to command attractive pricing even in non-core markets, while an attractive arbitrage between business and real estate multiples remained prevalent across many middle market sub-sectors. With more companies seeking to close transactions before year end in anticipation of a capital gains tax increase, though ultimately revised down from initial proposals, the sale leaseback market was expected to sustain its strength through the remainder of 2021.
