Unlocking Capital, Preserving Control, and Strengthening Financial Flexibility
For many companies, owning real estate once symbolized stability and long-term strength. Today, however, agility and liquidity often create more strategic value than ownership itself.
That’s where a sale and leaseback can come in—a transaction that allows a business to sell its owned property and immediately lease it back, freeing up capital while retaining operational control.
At Keyser, we help occupiers across industries—including office, warehouse, manufacturing, medical, and retail—evaluate whether a sale and leaseback supports their financial, operational, and long-term objectives.
1. What Is a Sale and Leaseback?
A sale and leaseback is a transaction where a company sells its real estate to an investor and simultaneously signs a lease to remain in the property as a tenant.
This structure allows you to:
- Monetize the asset by converting equity into cash
- Maintain business continuity by staying in your current space
- Lock in long-term occupancy terms that support operational needs
It can be an attractive strategy for companies that want to deploy capital elsewhere—such as expanding operations, investing in technology, or reducing debt.
2. Key Benefits of a Sale and Leaseback
Free Up Capital
Unlocking equity tied up in owned real estate provides immediate liquidity. That capital can then be reinvested into growth, innovation, or debt reduction.
Optimize Your Balance Sheet
Moving the property off the balance sheet can improve return on assets (ROA) and provide financial flexibility for other strategic initiatives.
Retain Operational Control
Unlike selling outright, a leaseback allows you to remain in place under long-term lease terms that suit your needs—ensuring no disruption to operations, workforce, or logistics.
Potential Tax Advantages
Depending on the structure and jurisdiction, companies may be able to achieve tax efficiencies through depreciation, rent deductions, or capital gains planning.
3. When a Sale and Leaseback May Not Be the Best Fit
While powerful, this strategy isn’t ideal for every company or property. A sale and leaseback may not be optimal if:
- You plan to relocate or significantly downsize in the near future.
- The property’s market value is temporarily depressed.
- Long-term lease obligations could limit flexibility if business needs change.
Keyser helps clients model multiple scenarios—including stay vs. sell vs. refinance—using AI-enabled financial analytics to quantify how each option impacts liquidity, balance sheet performance, and operational freedom.
4. How to Evaluate If It’s Right for You
To determine whether a sale and leaseback is the right move, consider these questions:
- What is your company’s current cost of capital versus potential return on reinvested equity?
- How critical is the property’s location or configuration to your operations?
- Would leasing introduce more flexibility—or more risk—over the next 5 to 10 years?
- How do current market conditions affect sale pricing and capitalization rates?
Keyser’s AI-powered valuation and benchmarking tools compare transaction data across global markets, ensuring clients understand real-time investor demand, pricing trends, and lease term expectations.
5. Structuring the Deal Strategically
A successful sale and leaseback requires aligning lease structure with investment strategy:
- Set a lease term that meets both operational stability and market attractiveness.
- Define renewal, expansion, and termination options that protect future flexibility.
- Benchmark rental rates and operating costs to ensure they remain competitive post-transaction.
- Evaluate multiple investor bids to drive pricing through competition.
Because Keyser represents only occupiers, our role is to structure the deal in a way that maximizes your financial outcome—not the buyer’s.
6. A Global Perspective
Sale and leasebacks are increasingly used by global corporations seeking balance sheet strength and capital redeployment flexibility. With over 600 professionals worldwide, including international partners, Keyser delivers consistent expertise and execution for clients managing portfolios across borders.
From medical facilities and logistics hubs to manufacturing plants and corporate offices, our team ensures each transaction is aligned with the client’s business strategy, tax considerations, and growth trajectory.
The Keyser Advantage
Keyser combines AI-enabled financial modeling, conflict-free representation, and global market reach to help occupiers make informed, data-driven decisions about sale and leaseback opportunities.
We provide the same full suite of services as any global real estate firm—site selection, transaction management, project management, and financial advisory—but with one crucial difference: our loyalty lies entirely with the occupier.
Because the best real estate strategy isn’t just about the property—it’s about what that property can help your company achieve.
Frequently Asked Questions:
Q: How do I know if a sale and leaseback makes financial sense for my company?
A: A sale and leaseback typically makes financial sense when the capital tied up in your real estate can earn a higher return when deployed back into the business. Companies often pursue this strategy to strengthen liquidity, fund expansion, accelerate growth initiatives, or reduce debt without disrupting operations.
Key indicators that a sale and leaseback may be beneficial include:
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Your return on reinvested equity is expected to exceed the cost of leasing
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The property is mission-critical and relocation isn’t likely in the near term
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You want to improve balance sheet efficiency and financial flexibility
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You prefer predictable long-term occupancy costs
A data-driven financial model comparing “own vs. sell vs. refinance” scenarios can help quantify the impact across cash flow, ROA, EBITDA, and strategic flexibility.
Q: What risks should I consider before doing a sale and leaseback?
A: Sale and leasebacks create liquidity and operational stability, but they aren’t ideal in every situation. Potential risks include:
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Reduced long-term real estate flexibility if business needs change
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Exposure to future rent escalations instead of fixed ownership costs
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Opportunity loss if the property’s value increases significantly post-sale
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Challenges if you plan to relocate or downsize in the near future
Mitigating these risks often involves structuring the lease thoughtfully—ensuring competitive rental terms, renewal options, expansion flexibility, and rights that protect operational continuity.
Q: What types of companies benefit most from a sale and leaseback?
A: Companies that benefit most typically have valuable real estate assets and a strategic need for increased liquidity. This includes businesses in sectors such as industrial, manufacturing, logistics, healthcare, and professional services.
Ideal candidates often:
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Occupy mission-critical facilities where continuity matters
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Need capital for growth, acquisitions, technology upgrades, or debt paydown
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Operate in high-demand markets with strong investor appetite
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Value balance-sheet optimization and capital redeployment flexibility
