Legal Definitions - building lease

A building lease is a type of lease that involves a long-term agreement between a landlord and a tenant for the use of a building. The lease includes a covenant that the tenant will erect or alter a building or other improvement on the leased land. The lease term can be for life, for a fixed period, or for a period terminable at will. The written instrument memorializing such a conveyance and its covenants is also called a lease agreement or lease contract.

For example, a company may lease a building from a landlord for 10 years and agree to construct a new office building on the leased land. The lease agreement will outline the terms of the lease, including the rent amount, the length of the lease, and the tenant's obligations to construct the building.