In real estate, a master lease is a primary lease agreement that governs or controls subsequent leases related to the same property. It establishes the fundamental terms and conditions under which the property is leased, serving as the overarching agreement between the owner and a principal tenant.
Subsequent leases, often called subleases, are structured to conform to the provisions of the master lease. The rights and obligations of subtenants are therefore limited by the terms of the master lease, and any sublease must remain consistent with its restrictions, duration, and permitted uses.
