Key Benefits of a Sale-Leaseback for Manufacturing Operators
August 06, 2025
by a professional in Los Angeles, CA, USA
Unlock Capital for Core Operations
• Convert real estate equity into capital for growth, equipment, or R&D
• Avoid taking on new debt or drawing down credit lines
Maintain Full Operational Control
• Remain in place under a long-term lease with no business disruption
• Mission-critical facilities are often highly attractive to real estate investors
Financial & Strategic Advantages
• Improve balance sheet metrics (e.g., ROA) by monetizing a non-core asset
• Lease payments are generally fully tax-deductible
• Hedge against real estate market fluctuations by locking in today’s value
Alternative to Borrowing
• Gain liquidity without adding debt or impacting credit capacity
Support Long-Term Goals
• Fund future expansion, acquisitions, or ownership transitions
• Create liquidity for succession planning or recapitalization
If you're acquiring a business with a mission-critical real estate component — or currently operate a business that owns its real estate — feel free to reach out for a complimentary sale-leaseback analysis.
Joel Cukier
redacted
in Los Angeles, CA, USA
from University of Texas at Austin in Houston, TX, USA