Corporate and Government Sale Leasebacks

Corporations and governments face increasing pressure in today’s marketplace to move real estate off balance sheet in order to raise capital and focus on core activities.  It is estimated that corporations in the United States own approximately $1.7 trillion of an estimated $4.3 trillion commercial real estate market.  ECM estimates that the total amount of net lease transactions in the United States is approximately $20 billion per year.  While the amount of sale leaseback activity has been substantial in this period of low interest rates, ECM anticipates that the supply of attractive opportunities will increase as the uncertainty in the capital markets continues and corporations see fewer financing alternatives, compelling them to move assets off balance sheet through sale leasebacks.