CRE Demand
All insights
ArticleOperators

Sale-leaseback vs. traditional debt: what actually changes

February 20265 min read

Up to 100% of value versus 60 to 70% loan-to-value. Here is the trade-off, in plain terms.

A loan and a sale-leaseback can both turn your building into cash today. They are not the same thing, and the differences matter for control, cost, and your balance sheet.

How much you unlock

A lender typically advances 60 to 70% of a property's value and holds a lien. A sale-leaseback unlocks up to 100% of the value, because you are selling the asset rather than borrowing against it.

Debt vs. no debt

A loan adds debt, interest, and covenants. A sale-leaseback adds none of those. There is nothing to repay, and rent replaces a mortgage payment on terms built around your operations.

What stays the same

You keep operating in the same building on a long-term lease, commonly 15 years or more with renewal options. The capital is yours to redeploy into the business.

See what your real estate could unlock.

Book a free, no-pressure consultation and we will walk you through the numbers.

Book a free consultation