Sale-Leaseback Dollar Volume Drops By Half In Q3

125 Broadway in Cambridge.
125 Broadway In Cambridge

The number of sale-leaseback deals nationwide remained robust during the third quarter, but the dollar volume represented by those deals halved, according to SLB Capital Advisors' latest report.

SLB reported 237 discrete sale-leasebacks during the third quarter, equal to the second quarter, which was a record.

Dollar volume was down considerably in Q3 2022, however, at $5.1B, half of Q2's $10.2B. SLB chalked up the drop to the lack of large casino deals in the third quarter.

Large third-quarter sale-leaseback deals included Boston Properties acquiring Biogen's headquarters for $592M and Oak Street's purchase of a QVC/HSN distribution portfolio for $443M. Only seven deals totaled more than $100M in the third quarter.

Industrial deals accounted for 58% of all third-quarter transactions, SLB reports, up from 50% in the second quarter.

Fourth-quarter sale-leasebacks are off to a strong start.

In November, Bally’s Corp. closed a $500M sale-leaseback with private equity investor Oak Street Real Estate Capital to acquire and develop the future site of Bally’s Chicago. That same month, Ionis Pharmaceuticals sold its San Diego headquarters to Oxford Properties for $258M and leased the property back.

Continue reading this story with a free account

Log in or register
Sign up for more articles like this
Subscribe to Bisnow's National Newsletters
Related Stories

JVP Development Is Betting $37M Of Its Own Money That Frisco Is Ready For Spec Office

Wall Street Impatient For Big Tech Returns On Data Center Spending

As AI Adoption Ramps Up, Half A Million Property Managers Are In The Crosshairs

Treasuries Hover Around 4.7% As Wall Street Questions If Warsh Is A 'Dove In Hawk's Clothing'

Avison Young Had Assets Frozen By Bank Over Unpaid Taxes

Camden Property Trust Sells West Coast Portfolio, Clears $1.5B Target

Churchill Downs Plans To Sell 9 Casinos, Focus On Horse Racing

Bringing Stability And Savings To CRE Insurance Through Working Layer

More Hotel Owners In Need Of Cash Are Getting It From The Big Brands

Former Arms Dealer Targeting Heartland Apartment Takeover Files For Bankruptcy

SEC Charges REIT, Its Founders With Alleged $152M Fraud Scheme

Equinix Ramps Up Spending Plans Amid Faster-Than-Expected AI Shift