EBYX Center

Leaseback deals and sales across Europe have increased from six percent of the 2004 property market to 17% during just the first two quarters of 2009 according to a new report by property agents CBRE. The company also reported that there is a large scope of about £2 trillion for future growth in the sector of properties that are owned by European businesses.

HSBC was responsible for one of the principal sale and leaseback deals every when it sold its Canary Wharf headquarters to Korea’s National Pension Service.

CBRE stated that the number of deals that it is working on that concern sale and leaseback has risen exponentially in just a year from 1.5 to 3b.

During these deals a business sells the building to a new owner to get out of the landlord obligations but then lets the space from the new owner. This type of deal is expected to have a large effect on the current commercial property market, since there is currently a lack of new quality market space for sale.

In fact, the shortage of quality desk space has pushed up this type of rents, even though general rents have fallen more than 45% over the last three years in the wake of the recession.

Head of CBRE’s corporate strategy department, John Wilson, stated that the new reality is that as organizations continue to look towards sale and lease back opportunities to increase their capital due to a lack of finance options the companies who take advantage of the opportunities will come out on top.