Sale Leasebacks May Be Returning
Eric Odum
September 29, 2008
In a sale-leaseback, a business can sell real estate they own and then rent the property back from the investor/buyer under a long-term net lease, which term usually runs for 15 or 20 years plus extensions and options. Sale-leasebacks can be as short as a 5 year term, as well. Real estate can make up a large portion of a company's asset base, which is particularly true in small businesses. The economic climate right now is such that traditional sources of capital have become more difficult and expensive to obtain now. Many private and public companies are focusing on their asset base and cost of capital trying to figure out the best strategy for their growth and expansion.
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