ACREX · CALDWELL, NJ
Sale-Leaseback for NJ Owner-Users
Sell your building and stay as the tenant.
Sell your building, stay as the tenant, and turn equity into cash. Here is how it works in northern NJ.
How it works
You set the lease: rent, term, renewal options and who pays taxes, insurance and repairs.
Investors price the deal on that lease and your company’s credit.
You close the sale and keep operating with no move.
Market context, Q3 2026
Matthews: northern NJ industrial cap rate 6.36%, average price $214/SF, $4.1B in trailing-12-month sales.
Newmark: northern NJ industrial asking rent $16.36/SF NNN, 5.7% vacancy.
NAI James E. Hanson: Class A asking rent $16.04/SF; top-tier properties $18 to $20/SF.
Trade-offs to weigh
Pro: cash out at today’s pricing without moving.
Pro: rent is usually a deductible business expense (confirm with your CPA).
Con: you give up future appreciation and control of the real estate.
Con: a rent set too high to boost the price raises your costs for the whole term.
General information, not tax, legal or accounting advice.
Related guides
Owner questions
What is a sale-leaseback?
You sell the building you occupy to an investor and sign a lease to stay. You get the sale proceeds; the buyer gets a tenant and rent from day one.
Who is it for?
Owner-users, such as manufacturers, distributors and contractors, who want cash for the business but need to keep operating in the same building.
How is the price set?
Mostly by the rent and lease term you agree to, divided by the cap rate investors will accept. Northern NJ industrial averages a 6.36% cap rate and $214/SF (Matthews, Q3 2026). A higher rent or longer lease usually means a higher price.
Can a sale-leaseback be part of a 1031 exchange?
Possibly, but the rules are technical. Talk to a tax advisor before you sign anything.
Talk to AcreX
Book a consultation with Jonathan Libock · Call (201) 694-6463 · jon@acrex.co
By Jonathan Libock, AcreX · Published November 2, 2026 · Sources: Matthews Northern NJ Industrial Q3 2026 (Oct 30, 2026); Newmark 3Q 2026 Northern NJ Industrial; NAI James E. Hanson 3Q 2026 Industrial Report.