Sale & leaseback (S&L) transactions are gaining momentum as a mature form of collaboration between property owners and investors. This model enables companies to unlock capital tied up in real estate while continuing to occupy the asset under a lease. At the same time, it provides investors with access to stabilized, income-generating properties. No longer seen as a short-term solution, S&L is now recognized as a long-term capital management strategy that strengthens the tenant–landlord relationship.

Sale and Leaseback Transaction: Unlock Capital and Focus on Business Growth

Sale & leaseback (S&L) transactions are gaining momentum as a mature form of collaboration between property owners and investors. This model enables companies to unlock capital tied up in real estate while continuing to occupy the asset under a lease. At the same time, it provides investors with access to stabilized, income-generating properties. No longer seen as a short-term solution, S&L is now recognized as a long-term capital management strategy that strengthens the tenant–landlord relationship.

For companies, this model offers an opportunity to release funds for core business growth while maintaining full operational continuity. Instead of owning real estate, businesses become tenants, allowing them to focus on strategic priorities—whether that means scaling operations, investing in ESG initiatives, or improving financial structures.

Raise Capital without moveing with a Sale and Leaseback

One of the primary advantages is the ability to raise significant capital without disrupting day-to-day operations. Proceeds can be used for strategic reinvestment, debt reduction, or innovation projects. Importantly, companies retain access to their current facilities, avoiding costly relocations, logistical reconfigurations, or production downtime.

Stable Investment: Industrial and Logistics Real Estate with Predictable Income

From an investor’s perspective, S&L provides an opportunity to acquire fully leased, income-producing assets managed by experienced users. This reduces risk and enhances predictability of returns. When transactions involve financially stable and well-established tenants under long-term leases (10–20 years), the investment becomes even more attractive—particularly in industrial and logistics sectors.

S&L as a safer investment model than purchasing a speculative asset

Another added value of this model is the business partnership that forms between the parties. Investors acquire not just the asset, but a committed tenant with in-depth operational knowledge of the property, resulting in better maintenance and optimized use. Compared to speculative acquisitions, this provides greater investment stability.

A new perspective on real estate and capital optimisation

In practice, S&L reshapes traditional views of real estate ownership—shifting focus from “holding” to “using,” and from “asset management” to “capital efficiency.” It’s a strategic tool for businesses looking to optimize their balance sheets and for investors seeking stable, long-term income.

This model is commonly utilized by core and core+ funds, family offices, and investors searching for alternatives to bonds or low-yield financial instruments. While the asset’s technical quality is important, the tenant’s profile—financial strength, growth outlook, lease terms—is often the decisive factor. For many, stable cash flows from a reliable user are the most valuable asset.

Generate Growth Capital Through Strategic Sale & Leaseback

Well-structured S&L transactions foster long-term partnerships. Tenants can focus on business operations, while investors benefit from fully operational assets with minimal vacancy risk. Key elements—rent indexation, renewal options, maintenance responsibilities—must be carefully negotiated to ensure mutual security.

S\&L is a Key Component of Strategic Asset Management

Beyond its financial benefits, S&L is increasingly part of broader corporate strategies: capital group reorganizations, IPO preparations, or portfolio optimization. The released capital is reinvested in areas that drive enterprise value, while the investor relationship enhances transparency and governance standards.

In today’s market, S&L is not just an alternative to bank financing—it’s a strategic management tool. When properly structured, it offers clear advantages for both sides: companies optimize capital and focus on growth, while investors gain stable, low-risk assets. In a changing macroeconomic environment, with limited access to financing, this model supports long-term business resilience.

Sale & Leaseback in industrial and warehouse properties: Optimisation for businesses and stability for investors.

According to AXI IMMO’s H1 2025 industrial market report, logistics properties are increasingly attractive for S&L transactions. High liquidity and a strong need among logistics and manufacturing firms to free up capital without relocating makes the model particularly compelling. Fully leased warehouse properties gain value as turnkey products, drawing investor attention.

As demand for logistics assets continues to grow, sale & leaseback is expected to play a larger role in the investment landscape—especially when the tenant has a strong operational profile and is seeking to optimize capital structures.

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Author

Joanna Lewandowska AXI IMMO

Joanna Lewandowska

Associate Director

Investment Department AXI IMMO

About AXI IMMO

AXI IMMO offers comprehensive advisory services related to commercial real estate, including warehouse and office leasing and property management, real estate valuation, land acquisition, and sales. The firm also offers B2B and B2C supply chain management services. AXI IMMO’s greatest advantage is combining international business standards with deep local market knowledge.

AXI IMMO has received numerous awards, including Best Local Agency of the Year in 2012–2019 and 2021 in the CiJ Awards and Best Team in the Warehouse Sector in 2016–2017. In 2019 and 2023, the firm was the winner in the Local Agency category, and in 2024, it was named Advisor of the Year at the CEE Investment Awards. AXI IMMO was named Local Agent of the Year in 2023 and 2024 in the CEE region at the CEEQA awards. The firm’s most recent achievement is the title of Advisor of the Year in the Prime Property Prize 2024.

The team at AXI IMMO’s Market Analysis and Research Department conducts regular market analyses and provides reports and publications regarding the commercial real estate market.