Net lease glossary
Master Lease
A single lease covering multiple properties leased to the same tenant, with one rent obligation and cross-defaulted terms.
A master lease bundles several properties into one lease with one tenant. Rent is usually stated in aggregate, and a default at one site is a default under the entire lease. Tenants generally cannot drop weaker locations without giving up the stronger ones, which protects the landlord. Master leases are common in sale-leasebacks of restaurant or retail portfolios. Selling individual properties from a master lease requires release provisions or tenant consent.