Sale and leaseback in Commercial Real Estate is a transaction that the Buyer purchases the property from the seller and then leases the property back from the new owner. The sale of the property is done with a lease agreement that the seller becomes a tenant.

You will want to get the Free Report to learn the Basics of the Sale and Leaseback process. You will will some of the Seller Advantages and Disadvantages in this type of transaction.

Seller Advantages:

• Raise Operating Capital
• Retains possession of the property
• No relocation costs
• Improves Balance Sheet

 

Seller Disadvantages:

• Loss of Residual Property Value
• Possible Relocation
• High Rent Payments
• Possibility of Buyer Default / Bankruptcy

 

Tax Considerations:

• Deduction of rental payments
• Timing Gain and Loss Recognition
• Capital Gain – Ordinary Loss Treatment

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