Ground Lease
A ground lease is a long-duration lease in which the tenant leases land and (typically) undertakes to construct or improve a building on it. The tenant pays rent for the land and controls the improvements during the lease term; ground leases are often used when the landowner wants to retain long-term land ownership while enabling development.
- Where it applies
- Generally, not specific to New York
- When it comes up
- Site acquisition; entitlement; construction; operations
- Property types
- Commercial and mixed-use; public land development; institutional landholders
In practice
Ground leases shift risk via governance: consent rights, permitted use clauses, refinancing constraints, and reversion mechanics often matter as much as rent.
Read more in the Knowledge Base
- Ground Lease Residential StructuresBuyers
- Commercial Tenant Risk in Mixed-Use Buildings - How Retail Performance Affects Residential Common ChargesBuyers
- Property Documentation and Record ManagementBuyers
- The New York LLC Transparency Act: Beneficial Ownership Disclosure for Property-Owning LLCsLandlords
- Property Tax Assessment AppealsBuyers
Related terms
Land and Site Acquisition
General information, not legal, tax or financial advice.