Sale-Leasebacks Down, But Corporate Appetite Large
Thursday, July 30, 2009
Source: GlobeSt
GlobeSt reports: Sale-leaseback activity totaled $798.5 million during the first half of the year, according to data from Real Capital Analytics Inc., the lowest volume for comparable periods in the last nine years. The second-lowest comparable period was in 2002, when almost $1.37 billion of sale-leasebacks were recorded. Even the first half of last year was considerably more active, with $3.95 billion of sale-leasebacks. The first half of 2007, by contrast, saw nearly $6.17 billion worth.
Of course, sale-leasebacks are no exception to the fact that volume of commercial real estate sales is down dramatically across the board. All commercial property sales during the first half of 2009 totaled a mere $18.78 billion, according to New York City-based RCA, which tracks properties and portfolios of $5 million and greater. For the first half of 2008, that figure stood at $88.44 billion. And as the market was peaking in 2007, total commercial property sales for the first six months of that year totaled $267 billion.
So while the sheer dollar volume is down, sale-leasebacks are accounting for a greater portion of the overall commercial property sales market. What’s more, experts indicate there is the potential for significantly more sale-leaseback business to be done this year.
View the full article on GlobeSt: Sale-Leasebacks Down, But Corporate Appetite Large
Posted by: Nina Turner