Sale-leaseback
A deal where a business sells property it uses and then leases it back from the buyer, usually on a long-term net lease. It frees up cash while the business keeps operating in place.
Also called: leaseback, sale and leaseback, sale-lease back
Related terms
A lease where the tenant pays base rent plus its share of property taxes, insurance and maintenance. The landlord's income is more predictable, and the tenant takes on rising operating costs.
An agreement letting the seller stay in the home for a set time after closing, usually paying rent or a daily fee. It helps sellers who need time to move.
Net operating income divided by the property's price or value. It shows the yearly return before financing and is used to compare properties and estimate value.
A project where a developer builds a property to a specific tenant's needs, and the tenant signs a long-term lease or buys it at completion. Common for retail chains, distribution centers and medical users.
Property used for business or to produce income, such as offices, retail, industrial buildings and larger apartment complexes. It is usually valued on its income and financed with commercial loans.