What method can a business owner use to free up equity while retaining possession of the current business location?

The method that enables a business owner to free up equity while still retaining possession of the current location is a sale and leaseback. In this transaction, the business owner sells the property to an investor or another party and then immediately leases it back. This creates immediate liquidity from the sale and allows the owner to use the cash for other business needs or investments while continuing to operate at the same location without disruption.

This approach is particularly advantageous for businesses that require capital but don't want to relocate or change their operational logistics. By entering into a lease agreement post-sale, the owner maintains control over the premises, ensuring continuity in their business operations.

In contrast, a lease agreement alone does not provide the capital needed to free up equity since it does not involve selling the property. A mortgage refinance typically involves altering the terms of an existing loan rather than generating new equity from a sale. Finally, a partnership agreement is a business arrangement that does not pertain to property ownership or equity release; it primarily involves sharing business responsibilities and profits with partners. Thus, the sale and leaseback option is the most effective method to achieve the goal of freeing up equity while retaining property use.