How sale-leasebacks work in Florida

We’re always hunting for sale-leasebacks. Want to do a sale-leaseback in the tri-county area (Sarasota, Manatee, Charlotte)? Call me. In a sale-leaseback, a business that owns its building sells the property to an investor and signs a long-term lease to stay. The owner turns real estate equity into cash and keeps operating in the same location; the investor buys a property with a committed tenant.

Why owners do sale-leasebacks

• Free up capital for growth, equipment, acquisitions or debt payoff, without leaving the building.
• Keep operational control and avoid a disruptive move.
• Shift capital from real estate into the operating business.
• Prepare for a business sale or succession by separating the property from the company.

What investors look at

• The tenant's financial strength and history (often the operating company and any guarantor).
• Lease length, rent level relative to market, annual increases and renewal options.
• Lease structure: most sale-leasebacks are net leases, with the tenant paying taxes, insurance and maintenance (NNN).
• The building and location on their own merits, if the tenant ever left.

Florida-specific points to raise with your advisors

• Florida documentary stamp tax applies to deeds (generally $0.70 per $100 of consideration outside Miami-Dade).
• Florida's state sales tax on commercial rent was repealed effective October 1, 2024.
• Tax treatment of the gain and the lease varies; your CPA and attorney should advise on structure. I coordinate with them.

Property types

Industrial and manufacturing facilities, warehouses, office and medical buildings, and retail or service properties occupied by the owner's business, across Sarasota, Manatee and Charlotte counties.