A developer leases a vacant lot for 99 years under a ground lease. The tenant builds a 10-story office building on the site. At the end of the ground lease term, who owns the building?
Correct Answer
C) The landowner, because improvements typically revert to the landowner when the ground lease expires unless the lease provides otherwise
Under most ground lease agreements, improvements constructed by the tenant revert to the landowner when the lease expires. The tenant loses the improvements unless the lease contains provisions for compensation, removal, or lease extension.
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A commercial tenant signs a triple-net (NNN) lease for office space. Under this lease, the tenant pays base rent plus which additional costs?
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A commercial landlord offers a new tenant a rent-free period of three months at the beginning of a five-year lease. What is this incentive commonly called?