--- title: How should I handle real estate and lease terms in a business sale? description: Real estate can be sold with the business, leased back or retained; each option has benefits and trade‑offshttps://www.midstreet.com/blog/how-to-handle-real-estate-in-a-business-sale#:~:text=If%20you%E2%80%99re%20leasing%20your%20business%E2%80%99s,once%20the%20deal%20is%20done. Prime 100 helps you structure real estate and lease terms that support your sale strategy. --- [Skip to content](https://servicehub.prime100businessbrokers.com/knowledge-base/how-should-i-handle-real-estate-and-lease-terms-in-a-business-sale#main-content) English - United States Show submenu for translations Prime 100 Business Brokers - [About](https://servicehub.prime100businessbrokers.com/knowledge-base/how-should-i-handle-real-estate-and-lease-terms-in-a-business-sale#about) Open main navigation Close main navigation - [About](https://servicehub.prime100businessbrokers.com/knowledge-base/how-should-i-handle-real-estate-and-lease-terms-in-a-business-sale#about) - English - United States Show submenu for translations - Contact us Contact us How can we help you? - There are no suggestions because the search field is empty. 1. [Knowledge Base](https://servicehub.prime100businessbrokers.com/knowledge-base?hsLang=en-us) 2. [Deal Structures & Financing](https://servicehub.prime100businessbrokers.com/knowledge-base/deal-structures-financing?hsLang=en-us) # How should I handle real estate and lease terms in a business sale? ## Deciding whether to sell or lease business real estate Real estate plays a key role in many business sales. If the business operates from leased premises, the buyer typically takes over the lease subject to landlord approvalhttps://www.midstreet.com/blog/how-to-handle-real-estate-in-a-business-sale#:~:text=If%20you%E2%80%99re%20leasing%20your%20business%E2%80%99s,once%20the%20deal%20is%20done. When the seller owns the real estate, there are several options: sell the property to the buyer as part of the transaction, sell it to a third party and lease it back, or retain ownership and lease the property to the buyerhttps://www.midstreet.com/blog/how-to-handle-real-estate-in-a-business-sale#:~:text=If%20you%E2%80%99re%20leasing%20your%20business%E2%80%99s,once%20the%20deal%20is%20done. Each option has pros and cons. Selling the real estate provides a lump‑sum payment but relinquishes future rental income; leasing it to the buyer generates ongoing cash flow but turns the seller into a landlord and may involve long‑term triple‑net leaseshttps://www.midstreet.com/blog/how-to-handle-real-estate-in-a-business-sale#:~:text=If%20you%E2%80%99re%20leasing%20your%20business%E2%80%99s,once%20the%20deal%20is%20done. Some buyers may not have capital to purchase real estate or prefer to leasehttps://www.midstreet.com/blog/how-to-handle-real-estate-in-a-business-sale#:~:text=If%20you%E2%80%99re%20leasing%20your%20business%E2%80%99s,once%20the%20deal%20is%20done. Sale‑leaseback arrangements or leases with options to purchase can accommodate both parties. Prime 100 helps you evaluate whether to include or exclude real estate in the sale. We coordinate lease assignments with landlords, structure sale‑leaseback or lease‑with‑purchase‑option arrangements, and explain how different choices affect price, taxes and financing. 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