Sandwich Lease

AAA

DEFINITION of 'Sandwich Lease'

A lease in which a party rents property from the property owner and then subsequently leases it out to another tenant. In a sandwich lease, the primary party is both a lessee and a lessor, meaning that the party both collects rent and pays rent. Not all property owners allow this sort of arrangement.

INVESTOPEDIA EXPLAINS 'Sandwich Lease'

A sandwich lease involves a party sub-letting what is already being sub-let. This type of leasing arrangement may come about if the primary party signs a long-term lease on a piece of property, but is either unable to use all the space or is looking to vacate.

RELATED TERMS
  1. Double Net Lease

    An agreement in which the tenant is responsible for both property ...
  2. Gross Lease

    A type of commercial lease where the landlord pays for the building's ...
  3. Lease

    A legal document outlining the terms under which one party agrees ...
  4. Lessee

    The person who rents land or property from a lessor. The lessee ...
  5. Lessor

    The owner of an asset that is leased under an agreement to the ...
  6. Deed Of Surrender

    A legal document that transfers property ownership for a specified ...
Related Articles
  1. Should You Buy Property On Leased Land? ...
    Retirement

    Should You Buy Property On Leased Land? ...

  2. Tips For The Prospective Landlord
    Home & Auto

    Tips For The Prospective Landlord

  3. Rent-To-Own Real Estate Full Of Pitfalls
    Home & Auto

    Rent-To-Own Real Estate Full Of Pitfalls

  4. Tax Deductions For Rental Property Owners
    Taxes

    Tax Deductions For Rental Property Owners

comments powered by Disqus
Hot Definitions
  1. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  2. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  3. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  4. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  5. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  6. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
Trading Center