Sale/Leaseback

Viewing the sale-leaseback from the seller/tenant's position, the Present Value Method is utilized to determine which alternative benefits the user more over a specified occupancy period. Owners can use this analysis to help choose among the following three options:

• Continue to hold the property
• Sell and lease the property back
• Refinance the property

The analysis quantified the costs of all choices and, all other things being equal, the user should take thew economically better alternative; that is, the one with the greater positive present value (PV).