Rising Interest Rates Propel Growth in Industrial Sale-Leaseback Transactions

By Peter Halm

In a surprising turn of events, higher interest rates, often considered an impediment to transactions in the broader commercial real estate market, are proving to be a catalyst for significant growth in the sale-leaseback sector. Data from SLB Capital Advisors reveals a robust surge in both transaction volume and dollar value, setting new records and indicating a positive trajectory for this unconventional financing method.

Record-Breaking Performance in 2022

According to SLB Capital Advisors, the total U.S. sale-leaseback volume reached 874 unique transactions in 2022, surpassing the previous record of 789 in 2021. This represents an 11% increase from the prior highs of 2019 and 2021. The total dollar volume soared to $31.4 billion, a remarkable 14% increase over the 2019 figure of $27.6 billion.

The Trend Continues in 2023

The momentum has carried into 2023, with SLB Capital Advisors reporting an 8.3% increase in dollar volume for sale-leaseback deals, reaching $5.1...

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