In the United States, the enhanced use lease (EUL) is a method for funding construction or renovations on federal property by allowing a private developer to lease underutilized property, with rent paid by the developer in the form of cash or in-kind services.
Since the agency can issue enhanced use leases only on land that is unneeded, the improvements must not be directly tied to any programmatic requirements of the installation.
The advantages to the developer include prime secure convenient locations on military installations, and the opportunity to provide sole-source services and products in lieu of rent for the ground lease.
The advantages to the federal agency include the possibility of fast-tracking alterations, repairs or new construction so that the improved space becomes available for lease.
Legal complications that have emerged include how EUL-encumbered property will be treated when an installation is targeted for closure under BRAC (example, Building 40 at Walter Reed Army Medical Center).