August is for Capital Strategy: Why Sale Leasebacks Are a Smart Move Right Now

As we enter August, many businesses are deep into Q3 planning, capital budgeting, and preparing for year-end positioning. It’s a month that often brings strategic recalibration, especially in a market still adjusting to high interest rates, tighter credit, and conservative lending practices.

For owner-occupiers and private equity-backed businesses, this is an ideal moment to consider a sale leaseback as a non-dilutive, flexible capital solution.

Why Now: August 2025 Market Context

• Debt markets are still expensive and selective Even if the Fed pauses further hikes, borrowing remains costly. Traditional financing options such as lines of credit, term loans, or refinancing are still being underwritten conservatively, and many borrowers are hitting covenants or seeing lower advance rates.
• Private capital is flush but cautious Real estate investors are sitting on dry powder and actively targeting stable, long-term net lease opportunities. They are seeking yield without volatility, and sale leasebacks remain one of the few places they can still find both.
• Companies are preparing for a stronger Q4 Many businesses are looking to free up cash for growth, M&A, or restructuring ahead of year-end. Sale leasebacks can unlock 100 percent of a property’s value without the dilution of equity or the burden of new debt on the balance sheet.

Sale Leasebacks: The Strategic Alternative to Debt

Unlike traditional financing, a sale leaseback converts an illiquid asset such as your real estate into working capital while allowing your business to remain in full operational control of the facility under a long-term lease.

Key advantages:

• Immediate access to capital
• No change in day-to-day operations
• No impact on ownership structure or equity dilution
• Improved financial ratios including debt-to-equity, return on assets, and return on equity
• Potential to monetize at a premium if the property is mission critical

What Makes a Deal Attractive Right Now

Investors are showing the strongest demand for:

• Industrial, logistics, manufacturing, or healthcare assets
• Properties with 15 years or more of lease term and market-based rent
• Creditworthy tenants, especially private equity-backed operators
• Facilities tied to essential or specialized operations

If your business occupies real estate that fits these characteristics, the opportunity to monetize at or above appraised value is very real.

Planning Ahead: Why August Matters

Waiting until Q4 to raise capital can limit your options. Depending on each company’s unique situation, a sale leaseback processes can take between 30 to 90 days, which makes August and September prime execution months for closing by year-end. Starting now gives sellers time to control the narrative, negotiate favorable lease terms, and position for a clean closing without year-end urgency.

Final Thought

Whether your goal is liquidity, growth capital, M&A, or balance sheet optimization, a properly structured sale leaseback can be one of the most strategic moves you make this year.

August is the right time to start that conversation. Reach out to one of our team members for a complimentary advisory session in order to determine your options and whether August is the right month to kick off your process.