Balance Sheet Optimization
Proceeds can be used to reduce debt, strengthen fixed-charge coverage, or reposition the capital structure ahead of future cycles.
Facility Development and Modernization
Structured real estate solutions can fund expansions or new developments while preserving internal capital for operations and growth.
Control and Alignment
A common concern among dealer principals is loss of control. Modern lease structures and development arrangements can be designed to preserve operational flexibility and OEM alignment. Long-term arrangements may include renewal and extension options, expansion rights, purchase options where appropriate, predictable escalations, and site protections reflecting operational importance.
When structured properly, these arrangements allow dealers to maintain long-term control of mission-critical facilities while improving liquidity and capital efficiency. The distinction lies not in whether a transaction occurs, but in how it is structured.
A Strategic Consideration
The most sophisticated dealership groups no longer view real estate as a binary choice between owning and leasing. Instead, they treat it as a strategic lever within a broader capital plan.
Leadership teams may benefit from asking:
What return is our real estate equity generating today? Is our capital structure aligned with long-term objectives? Would additional liquidity improve resilience or optionality? Are we positioned for ownership transition and selective growth without unnecessary balance-sheet strain?
Real estate will remain central to the equipment dealership model. The opportunity is to manage it intentionally— as a strategic asset that supports flexibility, long-term stewardship, and competitive positioning across cycles. EDM
www. surmount. com
SURMOUNT ® is an industry-leading full-service commercial real estate platform that provides comprehensive net-lease focused real estate solutions to investors, operators, and partners, globally. SURMOUNT offers a wide range of real estate-focused offerings, including Sale-Leaseback, Investment Sales Brokerage, Lease Advisory, Capital Markets, Development, and Principal Investments. Our clients and partners include private investors, REITs, private equity and financial sponsors, family offices, multiunit franchisees, business owners, tenants, developers, and lenders.
With over 25 years of an industryleading track record, we ' re redefining what it means to put " relationships over transactions," and we ' re just getting started.
NED HENNESSEY Vice President, Investments, Dealership Advisory & Capital Markets |
NED HENNESSEY has led the firm’ s Dealership Advisory & Capital Markets efforts since joining SURMOUNT in 2023 – overseeing more than $ 500 million in dealership real estate saleleaseback transactions. Collaborating with equipment dealers across North America, he unlocks real estate equity and structures strategic capital solutions for growth, M & A, facility development, balance-sheet optimization, and succession planning. Contact Ned at nhennessey @ surmount. com |
EVAN STERLING Associate, Dealership Advisory & Capital Markets |
EVAN STERLING is an Associate on the Dealership Advisory & Capital Markets team with SURMOUNT. Evan joined SURMOUNT in 2023 and works with equipment dealers across North America to unlock real estate equity and structure strategic capital solutions for growth, M & A, facility development, balance-sheet optimization, and succession planning. Contact Evan at esterling @ surmount. com |
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SPRING 2026 • EQUIPMENT DEALER MAGAZINE 29