How long is the lease in a sale-leaseback?

Usually ten to twenty years with renewal options. Investors pay more for a longer term; your business should commit only to a term it can live with, and build in the options it may need.

Who pays the taxes, insurance and repairs after the sale?

That is set in the lease you negotiate. Most sale-leasebacks are triple net, with the tenant paying them, which raises the sale price because the investor's income is predictable.

Is a sale-leaseback better than refinancing?

It releases more of the equity than a loan, with no debt on the business, but you give up ownership and pay rent for the term. Your CPA and a lender can compare the two for your situation; we provide the sale price and the rent the market supports.

For Owner-Occupiers

Sale-Leaseback: Sell Your Building and Keep Operating From It

Name: Sale-Leaseback
Brand: BreakThru Realty

Release the capital in your building without moving your business out of it.

Take the capital out of the building your business owns and operates from, anywhere in Florida, and keep operating from it. In a sale-leaseback the building is sold to an investor and leased back to your business on a long lease you negotiate before the sale, so the business stays where it is, the equity comes out, and the rent you set becomes the investor's return.

Get My Commercial Property Strategy · (786) 914-1017

BreakThru Realty · Founder and Broker of Record: Tyson E. Sam, Florida License 3565210

Your first step: Property Value & Disposition Review

Start With a Property Value and Disposition Review

Investors and owner-users price your building three ways: against the competition, against closed sales and on its income. The review shows you all three, where they meet, and the ways to sell that fit your timing and your tax position.

What you receive

A broker's opinion of value from closed sales, competing listings and, for an income property, the rent roll and the cap rates buyers are paying
The documents buyers and lenders will ask for, and which to prepare before listing
Disposition options: open-market sale, confidential sale, sale-leaseback or a 1031 exchange, with the trade-offs
The buyer profile for your property type and how we would reach it
A written summary of the figures behind the opinion

What happens next

Tell us the address, the property type and how the building is occupied.
A commercial agent pulls the closed sales and the competing listings and prepares the review.
We call within one business day to walk through it.
You decide whether, when and how to sell.

Free and confidential. It is a broker's opinion of value, not an appraisal, and we never publish an estimate for a specific property.

Get My Commercial Property Strategy · How commercial property is valued

How a Sale-Leaseback Works

You agree the lease first: term, rent, increases, who pays taxes, insurance and maintenance, renewal options. The building is then marketed as a leased investment with your business as the tenant. The investor buys the building and the lease; you receive the price at closing and pay rent from then on. The stronger the lease and the business behind it, the more the building sells for.

What It Is Worth

The sale price is the rent you commit to divided by the cap rate investors require for a single-tenant property with your business's credit, lease length and location. A longer term, fixed increases and a triple-net structure raise the price; a short term or a weak guarantee lowers it. The rent has to be one your business can carry comfortably, because a lease you cannot pay devalues the deal for everyone.

Who Buys Sale-Leasebacks

Net-lease investors, 1031 exchange buyers who need a replacement property on a deadline, and private investors looking for a single-tenant building with a long lease. They buy the lease as much as the building, so your business's financials, with a confidentiality agreement, are part of the package.

When It Makes Sense

To fund growth, buy out a partner, retire debt, or move the real estate out of the business before a sale of the business itself. A business owner selling the company and the building together can also sell the building to an investor and the business to an operator who leases it, often for more than selling both to one buyer. See how we sell businesses.

The Process

A pricing review of the building and the rent it can carry; the lease terms agreed with you and your attorney; a marketing package with the lease abstract, the building and the business's financials under NDA; offers, due diligence and closing coordinated with your attorney, CPA and the buyer's lender. Tell your CPA early: the tax treatment of the sale and the deductibility of the rent matter to the decision.

Questions you may be asking

Can the sale be kept confidential?: Yes. Financials go only to buyers who sign a confidentiality agreement, tours are by appointment, and a tenant-occupied building can be marketed without disturbing the tenants. The review sets out the options and the MLS rules that apply.
What does it cost to sell?: The commission is negotiable and agreed in writing in the listing agreement before anything is marketed. Other seller costs usually include title and closing charges and Florida documentary stamp tax on the deed; your closing agent confirms the figures.
I am thinking about a 1031 exchange.: Tell us before you sign anything: the exchange has to be set up before the sale closes. The review covers the timing, and your CPA and a qualified intermediary handle the tax side.
How long will it take?: Longer than a home. Pricing, marketing, a due-diligence period that commonly runs 30 to 60 days and financing all take time. The commercial market pages show how long listings like yours have been on the market today.

Request a Sale-Leaseback Review

On this page you can tell us: the property address and type, building size, your business and how long it will stay, the rent you could pay, what you would use the capital for.

Call or text (786) 914-1017 or email sales@breakthrurealty.com. A licensed BreakThru Realty agent follows up within one business day.

Frequently Asked Questions

How long is the lease in a sale-leaseback?: Usually ten to twenty years with renewal options. Investors pay more for a longer term; your business should commit only to a term it can live with, and build in the options it may need.
Who pays the taxes, insurance and repairs after the sale?: That is set in the lease you negotiate. Most sale-leasebacks are triple net, with the tenant paying them, which raises the sale price because the investor's income is predictable.
Is a sale-leaseback better than refinancing?: It releases more of the equity than a loan, with no debt on the business, but you give up ownership and pay rent for the term. Your CPA and a lender can compare the two for your situation; we provide the sale price and the rent the market supports.