A master lease is a single lease covering multiple properties, or a whole property the tenant may sublease.
A master lease is often used when a tenant operates several locations or when an investor leases a property to an operator who then subleases. In a portfolio, a single master lease can tie multiple properties together with a shared guarantee and cross-default provisions. That can protect the income stream, but it can also make selling one property harder. Buyers should read the master lease and any subleases to understand who is ultimately responsible for rent.