After two years of average sale-leaseback transaction volume, signs of renewed momentum have been emerging. What factors are expected to drive sale-leaseback activity through 2025 and into 2026?
Mergers and acquisitions tend to be a considerable driver of sale-leaseback volume. In the M&A markets, financing costs are decreasing, pent‑up dry powder is pressing traditional private equity sponsors to deploy capital, and longer-than-normal hold periods of portfolio companies are playing into exit decisions. Against this backdrop, sale-leasebacks (SLBs) have reentered the spotlight as one of the few strategies that can deliver capital free of covenants, while raising value and keeping the operating business — and its growth trajectory — intact.
Unlock liquidity
SLBs allow privately held companies convert illiquid real estate into cash while preserving control. They can unlock the full value of owned facilities (often much more than a mortga
