Net lease glossary
Sale-Leaseback
A transaction where a company sells real estate it occupies to an investor and simultaneously signs a long-term lease to stay.
In a sale-leaseback, an operating company sells property it uses, such as restaurants, stores, or a distribution center, to an investor and leases it back on a long-term net lease. The seller converts real estate equity into capital for growth, debt paydown, or acquisitions while keeping operational control. The buyer gets a new lease with terms often negotiated directly with the tenant, including rent, term, guarantees, and financial reporting requirements.