Definition
A lease that gives the tenant the right to sublease the property to others, essentially making them a middleman landlord. It's landlording with training wheels, or a profit opportunity, depending on your perspective and local laws.
Example Usage
I signed a master lease on the whole building, then sublet the units individually—the spread pays my own rent plus profit.
Origin
Commercial real estate terminology that became common in the mid-20th century, increasingly adopted in residential investing
Fun Fact
Master leases are popular with real estate investors who lack capital to purchase but want to control properties, though many landlords prohibit subletting in their leases specifically to prevent this.
Related Terms
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See “master lease” in Corporate Speak, Gen-Z Slang, Pirate Speak, and more.
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