Industrial Spotlight

High Demand for Stabilized Assets With a Long-Term Lease Boosts Investor Interest in Industrial Sale-Leaseback Deals

Appeal of sale-leasebacks on the rise. The convergence of three factors has sparked increased interest in sale-leaseback options for companies that own and occupy industrial space. The extended growth cycle and emergence of e-commerce has spurred demand for industrial space nationwide, pressuring vacancy rates to their lowest levels on record. At the same time, industrial property values have risen substantively, offering property owners significant profit potential that can be reinvested into their businesses. Adding to this mix, new tax rules placed in effect this year will reshape business interest deductions and the cost-effectiveness of businesses owning the real estate in which they are located. The new tax code also allows for businesses to depreciate 100 percent of certain assets over one-year, leading business owners to invest more extensively into current operations...   ...more

RSK: Industrial is still the darling of the industry.