Want Top Dollar for Your Real Estate? Sign a Long-Term Sale Leaseback First

If you’re an owner-occupier considering a real estate sale, there’s one move that can significantly increase your sale price: signing a long-term lease before going to market. 

In today’s environment, sale leasebacks with long-term, triple-net leases are commanding premium pricing from investors. Even in a high-interest rate climate, institutional and private buyers are actively pursuing deals with high-credit tenants, extended lease terms, and mission-critical facilities. They are often paying materially more than they would for the same property sold vacant or with a short lease remaining. 

Why the Lease Structure Drives Price 

It’s not just the real estate that investors are buying. They are buying the income stream. And when that stream is locked in for 15 to 20 years with built-in rent escalations, the asset becomes far more attractive and less risky. 

Here’s why buyers are willing to pay a premium: 

• Cash Flow Certainty 
  A long-term lease provides predictable, bond-like income that is highly valued in volatile markets. 

• No Vacancy or Releasing Risk 
  With 15 or more years of term, investors don’t need to worry about downtime or future leasing costs. This makes underwriting cleaner and returns more reliable. 

• Built-In Rent Growth 
  Most long-term sale leasebacks include 2 to 3 percent annual increases or CPI-based bumps, giving buyers a built-in hedge against inflation. 

• Mission-Critical Occupancy 
  When the property is essential to the tenant’s operations—such as a headquarters, production facility, or logistics hub—it signals to investors that the business is committed to the location. That reduces risk and supports higher pricing. 

Real-World Impact: Pricing Premiums 

We routinely see 15 to 40 percent pricing premiums on real estate sold through a long-term sale leaseback compared to the same property marketed vacant or with a short lease term. That difference can translate to millions of dollars in additional value, simply by remaining in place as a tenant. 

What to Consider Before Signing 

Committing to a long lease is not always the right move for every business. Key considerations include: 

• Flexibility 
  Build in renewal options, sublease rights, and assignment language to preserve operational agility. 

• Rent Calibration 
  Rent must reflect fair market value. Overpaying undermines value. Underpaying can deter buyers. 

• Credit Profile 
  Strong business fundamentals will enhance pricing and expand the investor pool. 

The Bottom Line 

If your goal is to maximize value from your owned real estate, the data is clear. You will get a significantly higher price by executing a long-term sale leaseback with your company as the tenant. 

It is not just a real estate transaction. It is a strategic capital markets play. The best buyers in this market are seeking stable, long-term income with minimal risk. If you can offer that, you will capture the premium.