Business owners may consider sale-leasebacks to remove debt obligations from their balance sheets in rough economies, in this case particularly if they have been hit hard by the pandemic, said Dallas real estate attorney Camisha Simmons, managing member of Simmons Legal PLLC.
In the past year, several major retailers in DFW, including Tuesday Morning and Havertys, offloaded commercial real estate in sale-leaseback deals. In both cases, the firms entered into sale-leasebacks after experiencing substantial drops in traffic and sales during the early days of the pandemic.
“When a company is experiencing a liquidity crisis, or they are having problems with cash flow, they will often try to restructure their balance sheets to monetize whatever assets they may have in order to increase cash to use in operations or increase company profit,” she said. Read more https://www.bisnow.com/dallas-ft-worth/news/deal-sheet/tenants-looking-for-capital-investors-looking-for-plays-fuel-rise-in-sale-leasebacks-109052