What is ‘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.
Explaining ‘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.
Further Reading
- Financial constraints and the decision to lease-evidence from German SME – papers.ssrn.com [PDF]
- Do financial conglomerates create or destroy economic value? – www.sciencedirect.com [PDF]
- Economic consequences of changes in the lease accounting standard: Evidence from Japan – www.sciencedirect.com [PDF]
- The lease versus buy decision in real estate: Theory and practice – www.ingentaconnect.com [PDF]
- Wraparound Lease Financing of Personal Property – www.jstor.org [PDF]
- Bank size, lending technologies, and small business finance – www.sciencedirect.com [PDF]
- Understanding the Islamic prohibition of interest: A guide to aid economic cooperation between the Islamic and Western worlds – heinonline.org [PDF]
- The Economics of Leasing – academic.oup.com [PDF]
- New dimensions in educational financing: the Nigerian Education Bank – link.springer.com [PDF]
