Sale-Leasebacks: The Untapped Deal Structure Built for This Market

Curated for Developers, Investors and Landowners with Vision

If your business operates within the industrial property you own, and you haven’t explored a sale-leaseback, now may be the most advantageous time in years to do so.

With the availability of industrial spaces at record lows, and investor demand outpacing the supply of newly developed warehouses and logistics facilities, owner-occupants are often sitting on untapped capital without realizing it. The twist is that businesses don’t have to relocate or relinquish operational control to access that equity.

This is where the advantages of sale-leasebacks come into play. They are quickly becoming one of the smartest options for businesses to stay rooted and reinvest in growth. Yet, despite those advantages, sale-leasebacks remain underutilized and misunderstood in the Gulf South. Let’s change that.

What Exactly Is a Sale-Leaseback?

In the simplest terms, a sale-leaseback is when a business sells its property to an investor and then signs a long-term lease to remain in the building. You become the tenant, but you don’t have to relocate. You can actually maintain operational control.



Why Would a Company Do That?

Because it allows you to convert an illiquid asset into immediate cash, while maintaining business as usual. It’s like refinancing, but better because you’re not taking on debt. Instead, you’re freeing up capital that’s been trapped in walls, land and loading docks. You work directly with the investor to establish lease terms that align with your business needs, including a rental rate that works for you. As the leasehold tenant, you maintain operational control of the property. If long-term ownership remains important to you, you can also negotiate provisions such as a right of first refusal or even a future purchase option, allowing you the opportunity to reclaim ownership if your financial position evolves and repurchasing becomes a strategic fit.

The Industrial Market in New Orleans: A Rare Seller’s Moment

Southeast Louisiana’s industrial real estate market is experiencing one of its most competitive climates in recent history. Vacancy rates remain below 2.6% (Crexi, 2024) in many logistics and warehouse submarkets, while new constructionis constrained by rising costs and regulatory hurdles. At the same time, investor demand is exceptionally strong, particularly from buyers who seek stable, income-producing assets. Functional facilities located near ports, rail lines and major interstates are especially scarce, further intensifying competition. As interest rates slowly come back down to more acceptable numbers and cap rates follow suit, property valuations continue to climb.

For owner-occupants, this creates a powerful advantage. You may be able to command a premium sale price while still remaining in your facility. And because investors increasingly prioritize long-term tenants with strong operational track records, your business becomes a key part of the asset’s value beyond the building itself.

Top 5 Reasons to Consider a Sale-Leaseback in 2025

1. Liquidity Without Loans

A sale-leaseback unlocks equity without incurring debt or increasing your liabilities. That capital can be reinvested in new equipment, staffing, R&D or facility upgrades.

2. Maximize Value While the Market’s Hot

You may never again see today’s prices and buyer competition. Sale-leasebacks let you monetize your property while investor demand is peaking.

3. Streamline Succession Planning

If you're approaching retirement or planning a business transition, a sale-leaseback can clean up your balance sheet and boost sale multiples.

4. Tax Advantages

Lease payments are often tax-deductible operating expenses, improving your after-tax cash flow compared to a mortgage.

5. Stay in Control

You don’t give up operations. You just shift from owner to tenant, often with the ability to negotiate renewal terms, building rights and more.

Who’s Doing This?

Sale-leasebacks aren’t just a strategy for public companies or private equity-backed firms. They are increasingly being used by a wide range of local and regional businesses. Family-owned manufacturers are leveraging them to grow without taking on new bank debt. Third-generation logistics companies are using sale-leasebacks to consolidate properties and streamline operations.

Local distribution businesses are reinvesting unlocked capital into their people, processes and infrastructure. Even owners preparing for a future sale are employing this strategy to boost earnings before interest, taxes, depreciation and amortization (EBITDA) and maximize their exit proceeds.

In every case, the trigger is the same: the need to unlock capital without sacrificing control is the driving cause.

FAQs: What Business Owners Want to Know

How long is the lease typically?

Usually 5 to 15 years depending on a number of negotiated factors, often with built-in renewal options and rent escalations. Terms are customized.

Can I sell and lease back a property with a mortgage?

Yes, proceeds from the sale can be used to pay off your loan. The rest is yours to reinvest or hold.

Will I still have control over the property?

Yes, you’ll operate as you do today. These deals often come with agreed-upon rights for maintenance, signage and improvements.

What’s the downside?

You’re no longer the property owner, so you lose long-term appreciation and control over resale. In exchange, you gain liquidity, tax advantages and flexibility.

What if I want to exit my business and avoid a long-term lease?

A sale-leaseback can be a smart way to unlock capital from your real estate now while you work through your exit strategy or succession plan.

Why Now? A Narrow Window of Opportunity

We’re not just in a seller’s market. We’re in a strategic seller’s market, and it may not last forever. Investors are pulling back from risky, ground-up development and zeroing in on properties with strong tenants already in place. With borrowing costs rising, leased industrial assets are far more attractive than vacant buildings or speculative builds. At the same time, institutional capital is flooding into logistics-heavy regions like New Orleans, driving competition and prices even higher.

Here’s the kicker: some owner-occupants are sitting on record-level equity without realizing it. Their buildings have appreciated dramatically, but they haven’t yet tapped into that hidden value.

Make no mistake, this opportunity has a shelf life. Interest rates remain volatile, insurance premiums are shifting and broader economic trends could cool buyer appetite. If you’ve been waiting for the right moment, this might be it. The smartest deals often come down to timing.

Final Take: This Isn’t Just About Selling Property. Future-Proof Your Business

Sale-leasebacks offer more than cash. They provide strategic flexibility, balance sheet optimization and the ability to stay competitive in a rapidly shifting economy. The most successful owner-occupants don’t just ask, “What’s this building worth?” They ask, “What can I do with the equity inside it?”

If you own an industrial facility and haven’t explored your sale-leaseback potential, now is the time. Before the market shifts. Before interest rates change again. Before your competitors beat you to it.