Retail organizations, which require widespread outlets to conduct their businesses, often use sale leasebacks as a way to operate properties in diverse locations without actually owning the properties.

While enjoying full use of such spaces, these corporations are pulling their capital out of real estate to invest it in more profitable core operations. Some companies use sale leaseback strategies to derive the funds for expansion or for mergers and acquisitions.

Of late, the sector most visibly involved in using sale leasebacks is the retail banking and finance industry, where companies are using revenues from sale leasebacks to expand operations. Net Lease Capital is currently selling 15 portfolios of Citizens Bank Branch buildings which were created as sale leaseback properties. If the credit markets continue to constrict, we are likely to see more retail spaces come to market in the same fashion, as corporations use sale leasebacks to put their capital to work in their cores business activities.