Why Sale-Leasebacks are Coming Back Strong

WarnerMedia created big buzz in January 2019 with the news of its proposed sale-leaseback of its tower at New York City’s Hudson Yards, which is still under construction. It was reported that the company hopes to raise approximately $2 billion from the sale of the 1.4 million-square-foot space it has taken there (and will not occupy until summer 2019).

The company had completed a similar transaction in 2014 as Time Warner, Inc., when it sold its interest in its Time Warner Center headquarters to a real estate investor and has leased it back until it is ready to move later this year to Hudson Yards.

Several other high-profile transactions have also drawn attention to the strategy, signaling that sale-leasebacks - whether they are in the office, industrial, retail, or hospitality sector -- remain attractive to sellers and buyers alike in today’s current environment.

Senior Managing Director Jahn Brodwin explains why in an article he recently authored for Globest.com