The U.S. sale leaseback market regained momentum in 2025, supported by a recovery in corporate mergers and acquisitions and rising demand for alternative financing strategies.
According to new data from SLB Capital Advisors, the market recorded 714 sale leaseback transactions in 2025, representing a 3% increase compared with the previous year. Total transaction value rose even more sharply, climbing 18% to approximately $14.4 billion.
The figures highlight renewed activity in a sector often used by companies seeking to unlock capital tied up in owned real estate.
Strong Second Half Drives Market Growth
Much of the year’s momentum came during the latter half of 2025, when corporate dealmaking began to accelerate.
Scott Merkle, Managing Partner of SLB Capital Advisors, said the uptick in activity became particularly noticeable toward the end of the year.
“Activity meaningfully accelerated during the second half of the year, signaling growing momentum heading into 2026,” Merkle said.
The fourth quarter was especially active. Sale leaseback transaction volume reached roughly $4.7 billion in Q4 2025, a sharp increase from about $3.0 billion in the third quarter.
The return of larger transactions helped push the annual total above 700 deals for the first time since 2022, a milestone analysts see as a sign of the market’s resilience.
M&A Activity Often Drives Sale Leaseback Deals
Sale leasebacks frequently follow periods of increased M&A activity, as companies look to free up capital after acquisitions or restructuring.
Merkle said the pattern held true again in 2025.
“Historically, when corporate M&A transaction activity improves, sale leasebacks follow as companies seek to unlock capital from owned real estate,” he said.
Beyond M&A-related deals, many companies also turned to sale leasebacks as a strategic financing tool during the year.
By selling property assets and leasing them back, businesses can generate liquidity while continuing to operate from the same locations.
Companies Seek Alternatives to Traditional Financing
SLB Capital Advisors noted that sale leasebacks have become increasingly attractive for companies looking to strengthen balance sheets without relying solely on traditional financing methods.
“For many businesses, monetizing owned real estate provides a highly efficient way to generate liquidity without diluting equity or increasing conventional debt burdens,” Merkle said.
The approach has gained traction across multiple industries, particularly among companies holding large real estate portfolios.
Outlook for the Sale Leaseback Market in 2026
Industry advisors believe the momentum seen late in 2025 could carry into the coming year.
Matt Wrobleski, Partner at SLB Capital Advisors, said sale leaseback activity historically tends to trail corporate dealmaking cycles.
“With corporate transaction volumes picking up toward the end of the year, we believe 2026 could be a particularly active period for the sale leaseback market,” Wrobleski said.
Pricing conditions may also support further growth. According to Wrobleski, cap rates for net lease assets have compressed moderately since the second half of 2025, improving pricing outcomes for sellers.
Combined with stronger M&A activity, the trend could drive additional deal flow across the market.
About SLB Capital Advisors
SLB Capital Advisors is a New York–based advisory firm specializing in sale leaseback transactions and real estate monetization strategies tied to mergers and acquisitions.
The firm works with corporations and private equity sponsors to unlock value embedded in owned real estate portfolios, helping companies generate liquidity while strengthening their balance sheets.
