NYC – With rental prices rising across New York City, master leases are becoming more popular than ever before. This is especially true when it comes to commercial properties. If you have never heard of a master lease before, it may sound intimidating. But these leases actually hold benefits for both renters and landlords.
In a master lease, the landlord doesn’t have to spend money on upkeep and building improvements. The landlord still maintains overall ownership of the property, but the master lessor is responsible for repairs and renovations. Once a master lessor increases the value of the building, they can then lease it out and charge a higher price for rent than they originally paid. This means that both the landlord and master lessor have an opportunity to make money.
At Skyline Properties, Robert Khodadadian agrees that master leases come with several benefits. Just some of these include the fact that the building owner can avoid capital gains taxes, and that the buyer maintains control of the property without needing to spend too much money.
While this concept may sound unfamiliar to some, master leases have actually been around for a long time. Property buyers have been making similar deals for decades, and just recently Khodadadian negotiated a 99-year triple-net ground master lease deal.
The real estate market is always changing, and that is especially true in New York City. Concepts like master leases are something to look out for now and in the near future. For more news about master leases and the evolving market, keep checking back with Skyline Properties!