The sale leaseback market's early-year momentum carried into the second quarter, even as broader M&A activity cooled from its record first-quarter pace. Sale leaseback activity reached its strongest second-quarter level in years, giving the first half of 2026 its most active start in years. This resilience, together with a robust sellside launch calendar cited by investment bankers, points to further momentum ahead. We also continue to track heightened industrial sector investment, driven by demographic shifts and capital rotating away from technology after its valuation reset earlier this year, a dynamic that correlates closely with sale leaseback opportunity given occupiers' preference to own real estate. The arbitrage between business and real estate multiples remains attractive, though elevated financing costs bear watching into the fall.
