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Sale-Leaseback Transactions: Structure, Advantages, Risks and Legal Considerations

By Katherine Medianik
September 30, 2025

In today’s economic landscape of elevated borrowing costs, tightening credit standards and heightened balance-sheet scrutiny, many businesses are turning to alternative financing models to access liquidity without disrupting operations. One such strategy — once a niche transaction type, now in the mainstream of real estate finance — is the sale-leaseback. This financial mechanism allows property owners to leverage real estate equity while continuing to occupy and operate their properties.

Sale-leasebacks can be a win-win for both sellers-tenants and buyers-landlords, but the structure is complex and demands careful attention. For counsel advising either client, the key lies in understanding not just the business rationale, but the nuanced lease provisions that can significantly affect long-term outcomes.

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