What does leasing mean?
Leasing is the practice of granting temporary use of property, equipment, or a business in return for rent or other agreed payments, while retaining ownership. The arrangement is governed by a lease, a contract that records the duration, payment terms, responsibilities, and permitted uses. Leasing is especially common in commercial real estate, vehicle finance, machinery, and equipment rental because it can give a business access to an asset without requiring a large initial purchase. A lease may be fixed-term or, in some property contexts, continuing. The word can also be used as a participle, as in a company leasing office space or a person leasing a vehicle. Unlike borrowing money through a loan, leasing usually concerns the right to use an identifiable asset for an agreed period, although modern structures vary and should be judged from the terms of the particular contract.
The activity or business of renting property, equipment, or a business for payment; a lease arrangement.
"The airline turned to leasing to reduce the cost of maintaining its fleet."
Often used in business and property contexts. It can denote either a particular contract or the wider activity.
The present participle of lease, meaning to grant or obtain temporary use of property, equipment, or a business in return for payment.
"The retailer has been leasing commercial units on the upper floors."
In this form, leasing may describe either the property owner's action or the user's arrangement.
The noun is usually used in the singular or as a mass noun; the plural is uncommon.
"The company specializes in leasings of commercial property."
Leasing lets someone use valuable property without buying it outright—and without tying up the purchase price in the asset.
Reviewed by Deb Chak, Editor. AI-assisted content curated by RJS Tech Solutions LLP.
Where does leasing come from?
The word ultimately comes from Old French laiser, meaning “to leave,” which was borrowed from Latin lazare, “to loosen, release, or leave.” The English noun lease developed from this ancestry, as did the legal terms lessee and lessor. The verb lease originally carried the sense of transferring property or granting the right to use it, a meaning that expanded from the literal notion of leaving something with another person.
Related word forms
How leasing is actually used
Leasing is common in business, property, automotive, and equipment contexts. It may refer either to the transaction itself or, more broadly, to the activity or industry. In British English, the related term hire is often preferred in some contexts, especially for cars and equipment.
Easily confused with leasing
Leasing generally involves granting or receiving temporary use of property or equipment, whereas lending usually means allowing someone to borrow money or an item for a period.