What's Master Lease?

Question

Hi guys,

I've heared a program called Master Lease

I do not know what is it, maybe just a name of a program, or system, i just want someone to explain me something about it.

All i know it has to do with comercial properties.

Tnx guys!

Answer 1

A master lease is simply the original lease agreement.  The term typically comes into play when a person subleases (when the person signing the lease then rents the property to another third-party).  I found an example online that makes it clear:

Abel leases 10,000 square feet of retail space to Baker. Baker then subleases the space to 5 different Tenants. The lease between Abel and Baker is the master lease.