Keywords
sale-leaseback transactions, commercial property pricing, price premium
Abstract
Sale-leaseback transactions are ubiquitous in real estate markets in the United States with annual volume estimated to be greater than $7 billion. However, there is no evidence concerning the price impact of such transactional arrangements. Using a data set of sale-leaseback transactions, this study examines the price impact on commercial property transactions across seven markets. The findings reveal that transactions structured as saleleasebacks occur at significantly higher prices than market transactions. In addition, after accounting for income differentials, buyers and sellers are appropriately pricing the transactions resulting in no undue advantage to either party, that is, the expected price premium is accounted for in the saleleaseback prices.
Original Publication Citation
Slade, B. and C.F. Sirmans, 2010, Sale-Leaseback Transactions: Price Premiums and Market Efficiency, Journal of Real Estate Research, 32:2, pp. 221 – 241.
BYU ScholarsArchive Citation
Sirmans, C. F. and Slade, Barrett A., "Sale-Leaseback Transactions: Price Premiums and Market Efficiency" (2020). Faculty Publications. 8911.
https://scholarsarchive.byu.edu/facpub/8911
Document Type
Peer-Reviewed Article
Publication Date
2020
Publisher
Journal of Real Estate Research
Language
English
College
Marriott School of Business
Department
Finance
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