Sale Leaseback of Net Leased Properties

Sale-Leasebacks for Business Owners & Investors

Unlock capital. Simplify succession. Strengthen your business.

A sale-leaseback allows a business owner to sell their commercial real estate at full market value and immediately lease it back long-term from the buyer. The result is simple:

  • The business stays in place and continues operating without disruption.
  • The owner converts an illiquid building into cash for retirement, expansion, or debt payoff.
  • The investor receives a predictable income stream from a stable, established tenant.

In a market where thousands of business owners are nearing retirement — many without a successor — sale-leasebacks have become one of the most powerful financial tools available.

Florida ROI helps business owners, buyers, and investors structure these transactions so both the business and the real estate reach maximum value.

Why Sale-Leasebacks Are Surging Right Now

Across Florida and the U.S., more business owners are aging out than ever before:

  • Children often don’t want to take over the business
  • Buyers of the business don’t want the building, or
  • Business + real estate together makes the deal too expensive to finance

A sale-leaseback solves all three problems.

It separates the operating company from the real estate so the owner can:

✔ Extract full market value from the building

✔ Improve the business’s financial strength

✔ Make the company far easier to sell

✔ Create a long-term, predictable lease that investors love

Many large brands — Home Depot, Walgreens, McDonald’s, Starbucks — lease their properties for this exact reason.

How a Sale-Leaseback Works

  1. Property Valuation — We determine market value based on tenant strength, location, and lease structure.

  2. Lease Structuring — We design a long-term, market-rent lease (typically 8–25 years).

  3. Sale to Investor — A private or institutional investor purchases the property with the lease in place.

  4. Business Stays Put — The seller becomes the tenant and continues operations uninterrupted.

Owner Gains Liquidity — Proceeds can be used for retirement, expansion, debt reduction, or working capital.

Lease Structure Options

A properly structured lease determines investor demand and the ultimate sale price. Common structures include:

Triple Net (NNN) Lease

 Tenant pays property taxes, insurance, and maintenance. Most institutional SLB investors prefer this structure.

Double Net (NN) Lease

Tenant pays most expenses; landlord may remain responsible for structural items such as roof and exterior walls.

Modified Net Lease

Tenant pays utilities, maintenance, insurance; landlord pays property taxes and certain capital expenses.

Bondable (Absolute NNN) Lease

Tenant is responsible for all expenses, including replacement of roof, HVAC, and parking lot. Highest investor demand.

Key Lease Terms That Maximize Value

  • Lease Term: 10–20 years is typical; terms under 8 years reduce value.
  • Rent Increases: Fixed or CPI-based escalations maintain inflation-adjusted returns.
  • Financial Covenants: Net worth tests and guarantees protect investors from unexpected credit changes.
  • Market-Rent Pricing: Overpriced leases decrease resale value; we ensure the rent is both fair and financeable.
  • Location Strength: Competitive markets, strong demographics, and visibility significantly enhance pricing.

Benefits for Investors

Investors choose sale-leasebacks because they offer:

✔ Single-tenant, long-term stability

✔ Strong tenant commitment to the property

✔ Predictable, consistent cash flow

✔ Protection against inflation

✔ Minimal management responsibilities (especially NNN)

It is one of the most “hands-off” forms of commercial real estate investing available.

Why Business Owners Use Sale-Leasebacks

1. Unlock Capital for Retirement or Expansion

Convert decades of built-up equity into liquid cash — without relocating.

2. Make the Business Easier to Sell

Separating the real estate often makes the operating business far more attractive to buyers.

3. Tax Benefits

Well-structured leases may offer deductible lease payments in place of diminishing depreciation.

4. Strengthen the Balance Sheet

Removing owned real estate can improve credit metrics and borrowing ability.

5. Eliminate Debt

Net proceeds can retire mortgages and simplify financial statements.

This strategy is ideal for businesses valued between $300,000 and $20 million in real estate.

Disadvantages to Consider

A sale-leaseback is not always the right fit. Possible drawbacks include:

Loss of Property Control

Future expansions or major changes may require landlord approval.

Tax Impact of the Sale

Long-held assets could trigger capital gains or reassessment of property taxes.

No Benefit for Unprofitable Businesses

If cash flow is weak, a sale-leaseback may not offer significant tax advantages.

Owners should always consult a tax or financial advisor to understand long-term implications.

Why Work With Florida ROI

Florida ROI specializes in structuring sale-leasebacks that work for both the operating business and the real estate investor.

We help owners:

  • Evaluate sale-leaseback pricing vs. holding
  • Structure institutional-quality leases
  • Market to qualified SLB investors nationwide
  • Coordinate with business brokers, CPAs, and attorneys
  • Prepare for a business sale 3–10 years ahead of retirement

Whether you’re planning an exit or simply need liquidity, we guide you through the entire process — confidentially and strategically.

Next Step: Confidential Consultation

If you are considering selling your business in the next 1–10 years, or simply want to evaluate the value of your real estate separately from the business, we can help you explore your options with no obligation.

Contact Florida ROI for a confidential sale-leaseback analysis.

Get an Appointment Today!

Call us at

Commercial Real Estate Sales & Leasing

Providing Commercial Real Estate Services throughout the Greater Tampa Bay Area
 
Markets Served: HillsboroughPinellasPascoPolk Counties
New office coming to St. Petersburg, FL
 
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