The Core Opportunity

You own your building. Your equity is locked up in bricks and mortar. A sale-leaseback lets you unlock that capital—without moving out.

Here’s how it works. You sell your property to an investor. At the same time, you sign a long-term lease to stay put. You keep operating from the same location. But now you have cash to grow your business.

The benefits are straightforward:

• Extract trapped equity and put it to work
• Eliminate property management headaches
• Convert a fixed asset into flexible capital

For the buyer, they get a property with a built-in tenant who’s motivated to stay. It’s a win on both sides.

What’s Changed in 2026

Interest rates are higher. Cap rates have expanded. That means sale-leaseback proceeds are lower than they were a few years ago.

A property that sold at a 5.5% cap rate in 2021 might trade at 7% today. That’s roughly 20% less in proceeds for the same property.

Does that make sale-leasebacks a bad idea? Not necessarily.

The math just requires a fresh look. If you can redeploy that capital into your business at returns exceeding your lease cost, the deal still works. And here’s the kicker—with business lending rates elevated, sale-leaseback capital may actually be cheaper than a traditional loan.

How Lease Terms Have Adapted

The market has adjusted. Today’s sale-leaseback leases look different from the low-rate era.

Rent escalations are higher. Landlords need protection against inflation.

Initial terms may be shorter. Think 10-15 years with renewal options, rather than 20-year terms.

Triple-net structures remain standard. Predictable cash flows still matter to investors.

For buyers, this environment is actually attractive. Entry yields are better. And a tenant who sold their building to stay in it? They’re motivated to perform.

Your Next Steps

Step 1: Model the true cost of the lease against your alternatives. Compare it to current business loan rates. You might be surprised.

Step 2: Align lease terms with your business planning horizon. Don’t sign a 20-year lease if you’re thinking 10 years ahead.

Step 3: Talk to a specialist who structures these deals daily.

Let Williams Capital Advisors Run the Numbers

At Williams Capital Advisors, we specialize in retail investment properties across Southern California—including sale-leaseback transactions for owner-occupants.

We’ll model the transaction economics for your specific situation. We’ll identify qualified investors for your property. And we’ll structure terms that work for your business timeline.

Wondering if a sale-leaseback makes sense for you?

Let’s find out together.

(213) 880-8107 | francisco.williams@williamscap.ai | williamscapitaladvisors.com