With everything that’s been going on with the transitioning economy, companies are definitely beginning to feel more pain. What this means is that there are companies out there that are trying to figure out where they’re going to get the necessary cash from to fund their ongoing operations, and a sale/leaseback transaction could be the ideal ticket for them to accomplish this.
A sale/leaseback transaction allows the owner-user to sell one or more of their buildings, thereby raising this needed cash, and it also allows the company to sign a lease to remain in the building for maybe 5-10 years or more, including potentially having options within the lease to extend their tenancy.
This could work brilliantly for both the owner-user and the investor, as the company occupying the building will get to raise the cash they need, then they get to remain in the building, looking like nothing at all has changed to both their employees and to their customers, and the investor then gets to buy one or more buildings with a solid tenant in place.
The one thing that the investor will want to make sure of in this transitioning market, though, is that the tenant will be a company that they can count on to make their rent payments for the entire duration of the lease.
So in putting all of this together, what companies and industries do you believe might currently be ripe to entertain an offer like this one? With this in mind, it may be time to contact the leadership within these companies, because not only might you end up selling one building for them, you just might end up selling an entire portfolio.