Sale-leaseback activity up 40% to $75B

Corporations look to cash in on hot market

TRD New York /
Apr.April 04, 2018 11:15 AM

Sale-leaseback deal activity exploded in 2017 as corporations look to cash in on demand for fully-occupied real estate, particularly in manufacturing and healthcare.

Sales of single-tenant, owner-occupied buildings grew 40 percent to $74.8 billion in 2017, according to Real Capital Analytics. The data only includes deals valued at $2.5 million or more.

“On the deals that we are doing right now I’m seeing some of the lowest cap rates on the credit and the product that I have seen in a long time,” Guy Ponticiello of CBRE’s capital markets team told National Real Estate Investor. Demand for healthcare and industrial assets is particularly high, he added.

But not all properties are in demand. “Where we’re seeing some caution is related to specific pockets, such as big-box retail and suburban office,” Scott Merkle of brokerage Stan Johnson Co. told the outlet.

Last year, ABC Carpet & Home sold and agreed to lease back its building at 880-888 Broadway in Manhattan. [NREI]Konrad Putzier


Related Article

arrow_forward_ios

Embattled Prodigy Network CEO Rodrigo Niño to step down

The Watchtower building at 25 Columbia Heights, CIM Group’s Shaul Kuba (right) and LIVWRK’s Asher Abehsera (Credit: Wikipedia, CIM Group, and LinkedIn)

JPMorgan leads $335M refi for CIM and LIVWRK’s Watchtower renovation

Multifamily market still reigns in Queens, Blackstone balks after rent reforms and more of the biggest CRE trends right now

Real estate titans … and their toys

Developer seeks $40M for Opportunity Zone site in downtown Newark

This East End icon might finally be closing in on a sale

Mack-Cali sells Paramus office property, Murphy enacts land bank reforms & more North Jersey real estate news

Power restored after blackout envelops West Side of Manhattan

arrow_forward_ios