A Sale-Leaseback can be a terrific tool for a business and property owner that wishing to make their hard assets more liquid.
By DAVID A. GRAHAM NEW YORK — Demand for corporate sale-leaseback real-estate transactions is picking up across the U.S. as companies seek a fast way to raise cash to ride out the recession. But a scarcity of buyers and low bids mean fewer deals are actually getting done.
Sale-leaseback transactions — where a company sells its office building, plant or other property and then leases it back from the new owner — is an alternative form of financing that some companies turn to when traditional financing, such as bank loans, are harder to obtain. During the first five months of this year, the value of U.S. sale-leaseback transactions declined to $853 million, compared with nearly $3 billion in the year-earlier period, according to Real Capital Analytics, which tracks deals greater than $5 million. (More from the Wall Street Journal)
By Helen Kaian Chang
In many parts of the country, the commercial real estate market is starting to look sick: tightening credit, slowing sales, and growing vacancies because of business failures.
But one niche market seems healthy: hospitals and medical office buildings. Even in recession, people still need healthcare. Add that to the country’s aging baby boomers, inadequate hospital infrastructure, and growing outpatient services—and the market has a hale future. (Complete Story)
Sale Leaseback Commercial Real Estate
