Selling your commercial property doesn’t always mean you have to move out right away. A sale-leaseback (often called a “leaseback”) lets you sell the real estate now while staying in place as a tenant for a defined period—giving you time to transition without disrupting operations.

What is a leaseback?

A leaseback is a transaction where you:

  1. Sell the property to a buyer, and
  2. Lease it back from the new owner—often starting on the closing date.

You become the tenant; the buyer becomes the landlord.

Why sellers use leasebacks

Leasebacks are common when you want to unlock equity but still need runway to operate, transition, or plan your next step. Examples:

  • Retirement or succession planning
  • Time to relocate without rushing a move
  • Cash to reinvest in the business or reduce debt
  • Continuity for staff and customers while you plan next steps

The key terms (what matters most)

A successful leaseback is all about the lease details:

  • Lease term: short transition (3–12 months) or longer operating term (3–10 years)
  • Rent: typically aligned with market rent and/or the buyer’s return expectations
  • Lease type: many buyers prefer NNN (triple net) where tenant pays taxes/insurance/maintenance
  • Extension options: one or more renewal options can protect your timeline
  • Repairs & maintenance: clearly define responsibility for roof, HVAC, parking lot, snow removal
  • Security/guarantees: buyer may request a larger deposit or guarantee depending on financials

Pros and trade-offs

Benefits

  • Access cash now while staying in place
  • Can broaden the buyer pool (investors often prefer income-producing properties)
  • A planned transition instead of a rushed relocation

Trade-offs

  • You take on a lease commitment after the sale
  • Rent set too high can strain operations; rent set too low can reduce buyer value
  • You’ll have less control over long-term property decisions

What buyers look for

Buyers evaluate the tenant as much as the building. They typically want:

  • Clear, supportable financials (ability to pay rent)
  • A clean lease with defined terms and responsibilities
  • Confidence in major systems (roof/HVAC) and zoning/compliance

Quick checklist: is a leaseback a fit?

A leaseback is often a good option if you want to sell now, keep operating, and control your transition timeline—especially if your business has steady cash flow and you want flexibility while you plan what’s next.

If you’d like to explore whether a leaseback makes sense for your property, contact us!

Granite Commercial Real Estate, LLC at (603) 669-2770 or info@granitecre.com.