Synthetic Lease

An operating lease that is structured in a way so that it is not recorded as a liability on the balance sheet. Instead, it is considered to be an expense on the income statement.

Investopedia Says:
Basically, a synthetic lease allows a company to control real estate without being required to show the real estate as an asset on the financial statements

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Rental agreement that shifts all obligations, risks, and costs of the property to the Tenant. The owner receives an absolute fixed rent. Also called credit-tenant lease.
Example: The Widtex Company wanted to exercise maximum control over its headquarters building but, for tax reasons, did not want to own it. The company structured a synthetic lease with the building's owner that required them to pay rent each year and left them to pay all expenses and remodel the building at their will.