While pricing has widened, early indications in 2023 point to a growing return to confidence for the sale leaseback market, according to a market update report from SLB Capital Advisors.
The report cites "strong credits and robust business models achieving successful processes with large interest from investors", even in non-core markets, particularly industrial.
Due to the current interest rate environment and companies' overall cost of capital, the SLB cap rates offer a more attractive cost-of-capital solution than ever, according to the report. "SLB rates remain well inside of many companies' WACCs and today, in more cases than not inside companies' current cost of debt financing, making the sale leaseback an incredibly attractive financing alternative," it stated.
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