Leaseback Property

Leaseback property makes up a significant portion of the property market in the United States. Estimates indicate that less than 40 percent of corporate real estate is actually owner occupied. Retailers, in particular, have frequently used leaseback deals, as the continued success of retail business is often linked to the ability to expand. Ownership, in such cases, may simply tie up cash that could be used for expansion.

The sale of leaseback property can serve to release the value of the real estate, giving the seller the cash needed to grow and acquire other assets. The selling of leaseback property may especially benefit corporations interested in reducing balance sheets and seeing improvement in terms of financial ratios. While the property is leased, its rental payments are shown in financial statements as conditional liability.

For the buyer, purchasing leaseback property can constitute a good investment. When the seller is a reliable tenant with good credit, the buyer gains practically guaranteed income. Furthermore, since many leaseback arrangements are made with net leases, the buyer/landlord may have very few expenses in relation to the property. In situations involving unsubordinated land, the benefits may include low-investment risk and appreciation.

To learn more about leaseback property, contact us at TM 1031 Exchange. We work with investors just like you, assisting them in developing and fulfilling investment goals. The property surveys on our site provide a sampling of available real estate. Keep in mind, however, that this is only a representative sampling and there may be many other properties available at any given time. Obtain more information by calling us toll-free at 1-877-4TM-1031 or sending e-mail team@tm1031exchange.com