This year, sale-leaseback activity is reaching record levels—and two major trends are fueling the deal velocity. According to Yuriy Chavarha of Pontus Capital, merger and acquisition and corporate growth are the two major factors driving the popularity of sale-leaseback deals.

"One of the main drivers of the sale-leaseback transaction volume this year is increased activity in mergers and acquisitions," Chavarha, VP and head of acquisitions at the firm, tells GlobeSt.com. "Corporate acquirers and private equity sponsors are increasingly more aware of the benefits that come with this type of financing strategy, which allows them to finance an acquisition of a company that owns its real estate, with less equity and ultimately pursue more transactions."

Accelerated corporate growth is also pushing many companies to shed real estate assets. "Companies that have corporate-owned real estate can utilize off-balance sheet financing to fund their growth plans," says Chavarha. "Compressed yields, driven by increased investor demand, have arguably made sale-leaseback financing competitive with more traditional debt instruments."