The U.S. sale leaseback (SLB) market is seeing a clear increase in interest as we move into 2026. Compared to the same period last year, a significantly higher number of corporates and private equity backed companies are actively exploring sale leasebacks as part of their capital strategy.
Following the interest rate volatility and capital market dislocation of 2022 through 2024, many companies delayed major real estate decisions while waiting for greater clarity around financing conditions and asset pricing. Now, with interest rates stabilizing and real estate valuations largely resetting, companies are revisiting real estate monetization strategies that had been put on hold.
As a result, advisors, investors, and lenders across the U.S. are reporting a growing pipeline of potential SLB transactions spanning industrial, logistics, manufacturing, healthcare, and essential retail sectors.
For many companies, sale leasebacks are once again emerging as an effective way to unlock capital tied up in owned real estate while maintaining operational control of mission critical facilities.
The broader U.S. commercial real estate market has begun to stabilize following several years of repricing driven by rising interest rates and tighter capital conditions. After peaking in 2023, inflation has continued to trend lower, allowing the Federal Reserve to gradually shift toward a more neutral monetary stance.
This stabilization is improving visibility across financing markets and helping restore confidence among both investors and corporate decision makers.
Commercial real estate investment volumes in the U.S. remained below long term averages in 2024 and early 2025 as the market adjusted to higher financing costs. However, activity began to recover through the latter part of 2025 as buyers and sellers moved closer together on pricing and capital returned to the market.
Within this environment, SLB transactions have become increasingly attractive because they offer several structural advantages:
Long term contractual income for investors
Liquidity generation for operating companies
Lower capital intensity for corporate balance sheets
Stable cash flows supported by operating businesses
As capital markets continue to normalize, SLBs are regaining traction as a strategic tool for both corporate finance teams and private equity sponsors.
One of the most notable shifts in 2026 is the increase in companies evaluating SLBs relative to last year. Across the middle market and sponsor backed ecosystem, discussions around sale leasebacks have accelerated for several reasons.
Many companies accumulated significant real estate ownership during periods of lower capital costs. While owning real estate can provide stability, it also ties up capital that could otherwise be deployed toward growth initiatives.
Sale leasebacks allow companies to convert illiquid real estate into deployable capital while maintaining operational continuity.
For CFOs and treasury teams focused on improving capital efficiency, this can be an attractive alternative to raising new debt or issuing equity.
Private equity sponsors continue to play a major role in driving SLB activity.
Within sponsor backed portfolio companies, owned real estate is often viewed as a non core asset that can be monetized to:
Fund acquisitions or expansion initiatives
Reduce leverage at the operating company level
Return capital to investors
Support refinancing strategies
As buy and build activity continues across many sectors, sponsors are increasingly evaluating SLBs as part of broader capital optimization strategies.
Although financing markets have stabilized, borrowing costs remain meaningfully higher than they were during the ultra low rate environment of the early 2020s.
In certain cases, companies may find that a sale leaseback provides a more flexible source of capital than traditional financing, particularly when real estate represents a large portion of the balance sheet.
For investors, these transactions provide access to durable income streams backed by operating companies with long term leases.
Across the U.S., several sectors continue to generate the strongest SLB activity.
Industrial assets remain the most active segment of the SLB market. Facilities tied to distribution, manufacturing, and supply chain operations are typically mission critical to tenants and align well with investor demand for long term leased assets.
Continued supply chain investment and domestic manufacturing initiatives are also supporting demand for these assets.
Manufacturing companies frequently own operational real estate accumulated over decades. As companies modernize operations or expand capacity, SLBs can provide capital to support these investments without increasing leverage.
Healthcare operators, medical service providers, and other essential service businesses continue to utilize SLBs to fund expansion while maintaining operational control of their facilities.
Retail and Multi Site Operators
Certain retail operators with strong operating performance and real estate ownership are also exploring portfolio level SLBs, particularly when they own a network of strategically located properties.
Looking ahead, several themes are likely to shape the U.S. SLB market over the next 12 to 24 months.
Continued Growth in Corporate Awareness
More middle market companies are becoming familiar with SLBs as a capital solution. Historically, SLBs were most commonly associated with large corporates, but awareness is expanding across the broader private company landscape.
Strong Institutional Demand for Net Lease Investments
Institutional investors including REITs, private real estate funds, and insurance capital continue to seek long term income producing assets. Net lease structures tied to strong operating businesses remain particularly attractive in this environment.
Discipline in Transaction Structuring
Although investor appetite remains strong, underwriting discipline has increased. Investors are focused on tenant credit quality, mission critical assets, and long term lease structures that support stable income.
Transactions that are well structured and aligned with investor expectations are seeing strong demand.
Gradual Increase in SLB Volume
As capital markets continue to normalize and companies gain confidence in pricing, the pipeline of potential transactions is expected to expand through 2026 and beyond.
While the market may not immediately return to the record levels seen in earlier cycles, the trend toward greater adoption of SLBs across corporate and sponsor backed companies is likely to continue.
The beginning of 2026 has already shown a clear increase in companies evaluating sale leasebacks as part of their broader capital strategy.
For businesses with owned operational real estate, SLBs can provide a flexible way to unlock capital while maintaining full control of mission critical facilities. At the same time, investors remain actively seeking long term leased assets backed by strong operating companies.
As the market continues to stabilize, the combination of corporate demand and investor appetite is expected to support continued growth in SLB activity across the U.S.
Our team at Ascension Advisory works closely with corporates and private equity sponsors to evaluate sale leaseback opportunities and structure transactions that align with both operational and capital objectives.
We welcome the opportunity to discuss whether a sale leaseback strategy may make sense for your business in 2026.