REAL ESTATE LEASE/BUY

Hi All,

I'm looking at a specialty construction business in which the real estate is also available for either sale or lease. My preference is to lease (at least at first), but how should I be thinking about evaluating terms? I get the sense based on real estate-only listings in the area that the payment amount the seller is asking for is high for the region/type of facility (but I'm no expert and I know that small variances in location, etc. mean a lot). Then again I'm not sure it's worth "spending" goodwill negotiating something that, for context, is on the order of 10% of SDE.

Also, how should I think about whether a sale-leaseback might make sense (seeing as purchasing the building is an option)?

Thanks in advance for any thoughts.



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