As 2026 unfolds, European sale leaseback (SLB) markets are entering a more constructive phase after years of rate volatility and capital retrenchment. Across the Eurozone, inflation has been trending down toward central bank targets, as the European Central Bank’s policy rate has eased from a peak of around 4% to just above ~2.25% by late 2025, helping to reduce nominal borrowing costs for real estate sponsors and occupiers alike.
At the same time, broader commercial real estate investment activity in Europe has shown signs of stabilization. European investment volumes in 2025 were expected to reach approximately €215 billion, representing a ~9% increase from 2024, approaching levels that support more reliable price discovery and capital deployment.
For both corporates and private equity–backed operating companies with real estate exposures, this evolving backdrop is bringing SLBs back into focus as a strategic capital tool that can unlock liquidity, fund growth initiatives, or enhance sponsor returns in buy-and-build strategies.
Spain’s economy continues to outperform many of its Eurozone peers. Real GDP growth is projected at ~2.9% in 2025, supported by strong domestic demand, tourism momentum, and inflows from EU recovery funding. Inflation is moderating toward roughly 2.9% in 2025, with expectations of further easing.
On the commercial side, activity has improved alongside broader investment volumes: MSCI data indicates that deal volumes in Spanish gateway cities like Barcelona were up more than 60% year-over-year through first nine months of 2025.
Within this context:
Cap rates for prime industrial and logistics assets (the most frequent targets of SLB capital) are often wider than in core Northern European markets, offering yield pick-up that can be attractive to institutional and cross-border investors.
SLB transactions are benefiting from a renewed appetite for long-dated contractual income, especially in logistics, food production, and essential retail where occupier credit remains stable.
For sponsors and corporates alike, Spain combines economic momentum with improving capital market conditions, making it one of Southern Europe’s most compelling SLB landscapes in 2026.
Portugal’s economy is smaller but resilient, with nominal GDP around $338 billion in 2025 and inflation trending near ~2.2%. While SLB as a standalone category remains less institutionalized than in Spain or the Netherlands, several structural tailwinds are in play:
Investors seeking yield are showing interest in diversified sectors, including logistics and specialized industrial facilities.
SLB transactions in Portugal are often driven by growth capital needs, particularly among mid-market and sponsor-backed businesses looking to optimize capital structure without diluting equity.
Relative to core Eurozone markets where prime yields have compressed significantly, Portugal often offers premium yields, making an attractive proposition for capital seeking both income and growth upside.
The Netherlands remains one of Europe’s deepest and most liquid commercial property markets:
The Dutch economy, with a nominal GDP over $1.3 trillion in 2025, is forecast to expand around 1.4% in 2025, supported by wage growth and moderating inflation.
Institutional capital here is highly disciplined and pricing and lease requirements reflect deep pools of pension, insurance, and global net lease capital, but that discipline brings execution certainty for strong credits:
Logistics continues to be a focal point of SLB activity, with stable rents and early signs of yield compression in key hubs like Amsterdam.
Office and residential segments are stabilizing after repricing, supporting broader investor participation.
For private equity sponsors and corporates with mission-critical logistics or production assets, the Dutch market offers sharper pricing and robust capital access, provided leases and structures meet investor expectations.
The Czech commercial real estate market is experiencing renewed traction:
Total investment volumes were on track to approach ~€4 billion in 2025, one of the strongest years on record.
Industrial and logistics stock is expanding toward ~13 million sqm, reflecting strong occupier demand, while vacancy rates remain tight across core segments.
The broader economy is forecast to grow around ~2.3% in 2025, with inflation near ~2.4%.
From an SLB perspective, this translates to:
Relative yield advantages vs. Western Europe, particularly in industrial and logistics, where local investors have been active and international capital is increasingly engaged.
Attractive pricing for mission-critical facilities with secure income, particularly where sponsors can offer long WALE and operational visibility.
Across these four markets, a clear pattern is emerging:
Stabilizing macro fundamentals are improving capital market confidence.
Investment volumes and transactional evidence are helping price discovery.
SLB interest is returning not just among corporates seeking balance sheet optimization, but also among private equity sponsors seeking flexible, non-dilutive cap solutions or equity optionality.
However, outcomes remain highly country-specific. Execution demands local insight into lease structuring, investor expectations, and sector dynamics - especially where private equity capital intersects with operational needs.
For corporates and private equity sponsors considering SLBs in 2026, the window has opened. The opportunity lies in early engagement, disciplined structuring, and execution with experienced advisors who understand both the macro and the market-specific nuances.
Our team at Ascension Advisory understands these nuances, and we encourage you to reach out with any questions, comments, or to see if a sale leaseback could make sense for you this year.