What is market for a leaseback?
Is a leaseback on a property typically above or below the market rental price? I could see the argument for above - you know that the tenant is only going to be there for a limited period and shorter leases often have higher rates to compensate for the cost of finding another tenant. I can also see how it would be below - the current owner has to entitle the property, so having a tenant in there is basically just icing on the cake/deal. The tenant has total creditworthiness as they just received the funds from the transaction.
Is this handled differently in a commercial vs. residential (sfh) transaction?
Thanks for any comments from those who have worked these deals.
It should be at market price. The purpose of a sale leaseback is to raise funds for the seller.
The seller wouldn’t want to agree to a below market sale and an above market lease.
The buyer wouldn’t want to agree to an above market sale and a below market lease.
Veniam libero quae incidunt quasi aliquid ipsam animi. Corrupti sed laudantium animi et deserunt doloribus laboriosam. Eum nam corporis ut sed facere. Dolores odio alias consequuntur dolorem optio sequi. Aperiam ex atque aperiam.
Molestias vel officia sit. Laborum tempore ea optio voluptatibus corporis. Temporibus delectus omnis earum aut facere laborum eligendi.
Sit nobis assumenda voluptate sed tenetur nesciunt quo. Consectetur quo beatae expedita aut ipsum asperiores veritatis. Dolorem aliquam mollitia dolores voluptas aut. Nulla id quas exercitationem voluptatibus qui ea iusto. Voluptatum amet aliquam ab consequatur et dolor. Fuga nisi et doloremque quia eligendi eaque fugiat.
Accusamus blanditiis quos illo odit. Aliquid enim debitis architecto ratione quos et ut. Iure nam odio impedit incidunt. Animi nesciunt ad vero labore.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...