Are you in need of increased cash flow and capital?
Sale-leasebacks could be the key to unlocking it. To tell you more, our latest guest post is from local commercial and industrial real estate specialists Commercial Collective.
The cost of running a business is seemingly increasing in all areas.
These costs include everything from staff costs with increasing super and salaries to rising power bills and interest rates.
There's certainly no denying that we're operating in a market with considerably more challenges than we're used to simultaneously experiencing.
To support these increased costs and ensure continued growth, many businesses are making decisions on the best way to unlock hidden value in their real estate assets and maximise their investments.
One solution that proves consistently viable is the sale-leaseback transaction.
A commercial real estate sale-leaseback involves an operating company selling its owned real estate to a third-party investor while simultaneously entering into a lease to retain possession of the property.
This sale-leaseback transaction allows you to unlock the latent value within your real estate assets, releasing capital to propel your businesses forward.
When coordinated professionally, a sale and leaseback strategy gives you control and flexibility while extracting maximum value from your new role as owner-tenant.
Some of the main benefits of sale-leaseback include:
While sale-leasebacks offer numerous benefits, it's essential to consider potential downsides, such as lease obligations, missed appreciation opportunities, and tax implications.
When weighing up the pros and cons of sale-leaseback, here are some of the key things we recommend you consider:
Engaging trusted real estate consultants can help you navigate these intricacies and determine the most suitable option for your business.
Sale-leasebacks are a viable option for any business looking to access the latent capital within their real estate.
When all factors are considered, and the transaction is made under the guidance of a commercial real estate professional in conjunction with a business advisor, you can put yourself in a win-win situation for future business growth.
Commercial Collective is the market leader in commercial and industrial real estate within the Newcastle and Greater Hunter region. Our unwavering commitment is to empower our clients by helping them unlock value in their lives and businesses through property.
(02) 4077 5858| www.commercialcollective.com.au