Is Sale/Leaseback Right for your Company/Organization?
Similar to coworking, a concept that is being seen in larger cities now trickling down to the secondary markets is called sale/leaseback. However, the two stem from two totally different means to an end.
Business owners who have immediate needs to be met that require operating capital can sell their property to a third party buyer such as an investor and then lease it back under a traditional long-term lease. This option would create liquidity from the sale that the owner could then use for other operating expenses within the business allowing them to stay open.
Local and national real estate developer JD Haase sees this as a viable option for any business, including small, privately owned businesses in the Bowling Green/Warren County area as the realities of COVID-19’s impact on the economy become clearer.
Larger corporations figured this out a long time ago and typically do not own their own buildings or properties. This gives them access to money that can be better spent in their business for other operating expenses. We have seen this strategy work well for them and I believe it can work well for smaller businesses too.
Haase began his commercial real estate investment and management company, Ewing Ford Properties, in 2017 although he has been in commercial real estate since 2004. He currently owns property in multiple states while also developing a coworking space, Ment Cowork, after purchasing the historic Ackerman building in downtown Bowling Green, KY.
I have always lived by a quote from my late father Jerry H. Haase: ‘The best get better by working together.’ This is how I feel about the times we are currently all working in.
Through the Paycheck Protection Program and SBA loans, we have seen a response from the government for Coronavirus financial help for small businesses, however, it may still not be enough.
If you are a business owner and running out of operating expenses, consider looking into the sale/leaseback option for your facility.
Ewing Ford Properties