For many business owners, commercial real estate isn’t just where operations happen—it’s also one of the largest assets on the balance sheet. But what if that property could do more than house your business? What if it could help fuel growth, strengthen your financial position, or provide flexibility for the future?

That’s where a sale-leaseback comes in.

What is a Sale-Leaseback?

A sale-leaseback is a transaction where a business that owns its real estate sells the property to an investor, then immediately leases it back. In other words, you become the tenant, continuing to run your operations in the same building—only now, you’ve unlocked the equity tied up in your property.

It’s a strategy many owner/users don’t realize is available, but when used wisely, it can provide both financial and operational advantages.

Top 5 Things to Consider if a Sale-Leaseback is Right for You?

1. Capital Needs and Growth Plans: Do you need capital to invest back into your business—whether for expansion, equipment, acquisitions, or paying down debt? A sale-leaseback provides immediate liquidity without taking on new loans.
2. Real Estate vs. Core Business Focus: Ask yourself: Do you want to be in the real estate business, or the business business? Selling your property and leasing it back allows you to focus on running and growing your company, while leaving property ownership and management to investors.
3. Lease Terms and Flexibility: The structure of the lease is critical. How long do you need to remain in the property? What rent structure aligns with your operating budget? The right terms balance your long-term occupancy needs with financial sustainability.
4. Market Conditions and Property Value: Timing matters. If your property is in a strong market with investor demand, a sale-leaseback could yield a premium price. On the flip side, if conditions are soft, you may not capture maximum value.
5. Long-Term Strategy: A sale-leaseback is not just a short-term financial maneuver—it’s a long-term commitment. Consider how your business may evolve. Will the location still serve you well in 10 or 15 years? If so, a sale-leaseback could be a strong fit.
   

Where Sale-Leasebacks Work Best

Not every property type is equally suited for a sale-leaseback. In our experience, some asset classes are particularly well-positioned for this strategy:

Industrial Real Estate

Manufacturing, distribution, and logistics facilities often attract strong investor interest due to their long-term stability and specialized use.

“Industrial properties are among the most sought-after for sale-leasebacks because they typically have strong tenants with long-term operational needs,” said Martin’s Christopher Miller, Senior Vice President, Industrial and Investment Advisor  “Investors value that stability, and owners can leverage the capital to reinvest directly into their businesses.”

Office Space

Headquarters, medical offices, and professional buildings can also be strong candidates—particularly for companies with established footprints.

“For owner-users, a sale-leaseback can unlock significant value in their office asset,” noted Eric Rosekrans, Executive Vice President and Office Advisor at Martin. “It’s a way to strengthen liquidity while still securing the space they rely on to serve clients and employees.”

While industrial and office are among the most common, other asset classes—such as specialized medical or retail—can also work in the right scenario. The key is evaluating investor demand and aligning it with your business objectives.

Is a Sale-Leaseback Right for You?

For some businesses, owning real estate provides stability and control. For others, unlocking capital through a sale-leaseback provides the flexibility and resources needed to thrive. The key is aligning the decision with your financial goals, growth plans, and operational priorities.

At Martin Commercial Properties, our advisors have decades of experience guiding owners through complex real estate strategies like sale-leasebacks. If you’re curious whether this approach could benefit your business, our team can help you evaluate your options and structure a solution tailored to your needs.