Heading into the back half of 2024, market dynamics are being shaped by a favorable macro backdrop — easing inflation, a cooling labor market, and the increasing likelihood of a September rate cut. These conditions have contributed to tightening cap rates for attractive sale leaseback opportunities amid a relative scarcity of supply and strengthening underlying fundamentals. At the same time, middle-market M&A valuations have pulled back relative to 2023, widening the arbitrage between business and real estate multiples and creating increasingly attractive sale leaseback opportunities across a range of industry sectors.
