In one sentence
A single overarching lease under which the tenant subleases space to occupants, common in structured and credit-tenant deals.
The longer version
In a master lease, one master tenant leases an entire property (or block of space) from the owner and then subleases to actual occupants. It can provide the owner a single creditworthy tenant and simplify management.
For lenders, a master lease concentrates credit in the master tenant and changes the income analysis, so its terms and the master tenant's strength are diligence focal points.
Keep reading