A sale leaseback is an agreement that will benefit both buyer and seller in different ways. Once you understand the process of sales and leasebacks, you will be able to decide if it is the best choice for your situation.
What Does Leaseback Mean?
A leaseback is an agreement between a buyer and seller where the buyer agrees to allow the seller to remain in the space as a tenant. When it comes to commercial real estate OKC, the arrangement is typically more extended periods, such as five to 10 years. Another answer to “what does leaseback mean?” is a triple net lease. With this arrangement, the seller, as a tenant, will take on the insurance, maintenance, taxes, and various other expenses as part of the lease agreement. The lease will determine the full extent of tenant responsibility.
Sales and Leasebacks
For the seller, this arrangement is beneficial for various reasons. The main benefit is the immediate cash flow and liquidity that the company gains from selling the property. Additionally, the seller is able to stay in their location without disrupting their business. It may also be possible to negotiate a longer lease and avoid inflated rent.
The buyer benefits because they will take over a property that has tenants from day one. This prevents the hassle of searching for people to rent the space. Additionally, the tenants have a vested interest in maintaining the property well.
Of course, when you consider what is a sale leaseback is, you should consider working with a professional to get the most for your money. An OKC commercial realtor will understand the market to ensure that the seller receives a fair price and pays a reasonable rent to the buyer, who now acts as the landlord. At Horizon Commercial Real Estate, we have the experience to help you negotiate a sale leaseback that financially benefits you, whether you invest in a new asset or are ready to sell your property. Reach out, and we will be happy to answer any questions that you may have about sales and leasebacks or other Oklahoma commercial real estate concerns.