--- title: Master Lease Definition | Agreements For Master Leases description: A master lease is the primary lease that controls other sub-leases and may cover more property than all sub-leases combined. Learn more about master leases. image: https://www.realized1031.com/hubfs/social-suggested-images/Realized_Glossary_Graphic-4.jpg --- [![Realized 1031 Exchange Marketplace](https://www.realized1031.com/hs-fs/hubfs/Images/Brand/Logo/Realized/Realized-Logo-Black.png?width=240&height=80&name=Realized-Logo-Black.png "Realized 1031 Logo") ](https://www.realized1031.com/) - Better Business Bureau Rating: **A+** - [FINRA BrokerCheck](https://brokercheck.finra.org/firm/summary/22333) - [Call](tel:1-877-797-1031) **(877) 797-1031** # Master Lease The primary lease that controls other sub-leases and may cover more property than all sub-leases combined. A master lease structure may be used for a variety reasons. An example may be a developer selling a new property before it reaches [stabilized occupancy](https://www.realized1031.com/glossary/stabilized-occupancy). In this case, the developer may sign a master lease for all or a portion of the vacant space. By master leasing the vacant space, the developer may be able to achieve a higher sales price as the buyer would be valuing a greater in-place income. The developer would then bear the risk of sub-leasing the space for the duration of the master lease term. In a different context, under a [Delaware Statutory Trust (DST)](https://www.realized1031.com/glossary/delaware-statutory-trust-dst) ownership structure, the Trust is technically prohibited from conducting any leasing activity. However, the Trust may enter into a master lease with a [Master Tenant](https://www.realized1031.com/glossary/master-tenant) that pays rent to the Trust and in turn sub-leases the property owned by the Trust. See [Master Tenant](https://www.realized1031.com/glossary/master-tenant). Download The Guide To DSTs [![The Investor's Guidebook To DSTs](https://www.realized1031.com/hs-fs/hubfs/Images/UI/graphics/composites/DST-eBook-250.png?width=250&height=250&name=DST-eBook-250.png "See if Delaware Statutory ...") ](https://www.realized1031.com/glossary/master-lease#blogform) Download eBook ---   --- ### The Investor's Guidebook To DSTs ![Download The Guide To DSTs](https://www.realized1031.com/hs-fs/hubfs/Images/UI/graphics/composites/DST-eBook-550.jpg?width=550&height=650&name=DST-eBook-550.jpg) See if Delaware Statutory Trusts are right for you. By providing your email and phone number, you are opting to receive communications from Realized. If you receive a text message and choose to stop receiving further messages, reply STOP to immediately unsubscribe. Msg & Data rates may apply. To manage receiving emails from Realized visit the Manage Preferences link in any email received. 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By master leasing the vacant space, the developer may be able to achieve a higher sales price as the buyer would be valuing a greater in-place income. The developer would then bear the risk of sub-leasing the space for the duration of the master lease term. In a different context, under a Delaware Statutory Trust (DST) ownership structure, the Trust is technically prohibited from conducting any leasing activity. However, the Trust may enter into a master lease with a Master Tenant that pays rent to the Trust and in turn sub-leases the property owned by the Trust. 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