According to PERE, corporate sale-leaseback activity surged 45% this year as CFOs race to unlock trapped capital in owned real estate.
However, a question remains unanswered: Why don’t we apply the same logic to the millions of dollars that are currently parked in tenant improvements?
The Hidden Capital Trap in Leased Space
For decades, the sale-leaseback strategy has been a straightforward decision, allowing companies to sell their owned assets and generate cash for growth, M&A, or debt repayment. As PERE notes, today’s sale-leaseback deals are clearing at attractive rates, often in the 7–8.5% range. Yet for companies that lease their space, the same opportunity has gone untapped.
A $20 million tenant improvement (TI) build-out isn’t just an expense. It is capital sitting idle for 10–15 years. Once paid, it’s locked away as a depreciating asset on your balance sheet. This process is not efficient capital management, making the TI expense trapped liquidity.
It is not a small problem in the United States. Companies spend an estimated $80+ billion annually on tenant improvements, most of which becomes stranded capital the moment the build-out is complete.
The Market Isn’t Waiting. Why Should Your Capital?
Many finance leaders are hoping that lower rates and looser credit conditions in 2026 will improve deal flow. As CommercialSearch recently highlighted:
“Lower rates flowing through to cheaper investor debt…”
“Continued thawing in banks’ willingness to lend money on commercial real estate…”
Conversely, your business needs to be capital-efficient today. You can’t wait for banks to “thaw.” That’s why forward-thinking CFOs are turning to Dolfin’s Sale-Leaseback Platform. It is a way to apply the same logic of a sale-leaseback to your leasehold improvements and FF&E.
How It Works
Instead of selling your building, you’re monetizing your past TI spend. Dolfin offers a lump-sum cash payment for your investment, which you will repay over the duration of your lease. This financing requires no collateral and has no restrictive covenants.
How We Unlock Trapped Capital
- Fund Legacy Capex: Monetize your leasehold improvements and FF&E from the past 10 years, turning sunk costs into cash.
- Unsecured Capital: No liens, no collateral, no bank interference, just simple, unsecured financing.
- Aligned, Long-Term Terms: Financing from $2M to $300M+, fixed rates in the 6–9% range (based on credit), and 10–20+ year terms that match your lease.
- Fast Execution: Close in 30–60 days and get liquidity back on your balance sheet.
The Bottom Line
Your past build-outs aren’t sunk costs, but they’re trapped capital waiting to be unlocked. Dolfin helps you turn yesterday’s investments into tomorrow’s liquidity.
