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.

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