The lease is an excellent solution, as the owner of the land can be exempted from his day-to-day activities and the owner of the obligations of capital improvement, repair and maintenance and receives rental payments. For the investor, a master leasing reduces the risk factor, since it is equity for bank financing, allows the investor to obtain cash flow and revalue profits above the master leasing rate as well as negotiate the purchasing capacity after the asset under the master leasing contract. The agreement between the principal tenant and the landlord may also take the form of an option contract that gives the tenant the right to buy or sell the property after the lease period has expired. The master leasing contract is maintained until today, with annual sales of the Empire State Building being $6 million per year. Of this revenue, Prudential received $2 million from the Master-Lease, which resulted in a us$4 million profit to the master tenant. The most famous leasing transaction that is still going on today is The Empire State Building. Sold in 1961 by its original owner to Prudential Insurance Company, an investor approached Prudential and offered a 114-year master leasing contract. A lease payment of $2 million per year was agreed to pay Prudential. How it works: The first step in a master leasing contract is to find an owner who is either looking to sell the asset or give up his day-to-day activities. The reasons for the landlord to leave or abandon the daily operation of a property could be motivated by the fact that the owners are motivated: the duration of the individual tenancy agreements that the principal tenant has entered into by place inside the property must not exceed the duration of the main lease.