Business Sale

Sale-Leaseback: Sell the Business, Keep the Real Estate

By Justin Crow · Mattis AdvisorsAugust 20265 min readSale-Leaseback
Sale-Leaseback: Sell the Business, Keep the Real Estate

Here’s a move most business owners never hear from a traditional business broker, because it lives at the intersection of two worlds: sell your company, but keep the building and lease it back to the buyer. It’s called a sale-leaseback, and at exit it often nets you more total value than bundling the property into the business sale.

How it works

You sell the operating business. You keep the real estate. The buyer signs a long-term lease with you at market rent. Now you have two things instead of one: the business sale proceeds today, and a building that pays you rent and that you can sell later or hold for income.

Model it: the free business + real estate value tool shows the business value, the leased-building value, and the combined total.

Why the numbers often favor it

A leased building is valued on its income: roughly annual rent ÷ cap rate. Lease your space to the buyer for $120,000/year at a 7% cap and that property is worth about $1.7M — an asset you keep on top of the business sale. Bundle the same building into the business sale and it often gets absorbed at a softer number, because the buyer is pricing the company, not the real estate. In South Florida, where recorded commercial values are strong (see the price index), that gap is real money.

Why buyers like it too

A sale-leaseback isn’t a concession you extract — buyers often prefer it. Leasing instead of buying the building means less cash at closing and more capital left in the business, which can even raise what they’ll pay for the company. A clean market-rate lease with them as the tenant is attractive on both sides.

When it wins — and when it doesn’t

Sale-leaseback shines when the real estate is valuable, the location is core to the business, and you’d be happy holding an income property. It’s less compelling if you want a clean full exit with no ongoing ties, or if the building is functionally tied to a use only you would run. That’s exactly the call to model before you list — and the reason to value the business and the real estate together.

If you’re thinking about selling, it’s worth knowing this option exists before a buyer (or a business broker who doesn’t do real estate) prices your building into the deal for you. Start with a free combined value estimate or a confidential conversation.

Next step: run the business + real estate value tool, then read how selling your business works.

Justin Crow
Justin Crow
Commercial Real Estate Broker · Mattis Advisors · Boca Raton, FL

Justin is a commercial real estate broker who advises business owners on the real estate inside their sale — with an operator’s and investor’s perspective (including private equity) on how property ties into a company’s value. (561) 571-8245 · justin@mattisadvisors.com

Could a sale-leaseback net you more?

Send me your earnings and space — I’ll model sell-together vs. leaseback, free and confidential.

Frequently asked

What is a sale-leaseback at business exit?

You sell the operating company but retain ownership of the real estate, then lease the space back to the buyer at market rent under a long-term lease. You get the business sale proceeds now and keep the building as an income-producing asset.

Why would a buyer agree to lease instead of buying the building?

Many buyers prefer it — leasing lowers the cash they need at closing and keeps their capital in the business. A clean, market-rate lease with a credit tenant (them) is attractive to them and to you.

How much is the leased building worth?

Roughly the annual rent divided by a market cap rate. At $120,000 of rent and a 7% cap, that’s about $1.7M of value you keep — separate from the business sale.