What is a 'ground lease' in commercial real estate?
Correct Answer
D) A lease of land only, typically long-term, where the tenant constructs and operates improvements on the landlord's land
A ground lease is a long-term lease of land where the tenant has the right to develop and use the property. The tenant typically constructs buildings or other improvements at their own expense, while the landowner retains title to the land.
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Related Topics & Key Terms
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Related Concepts
Joint tenancy is a form of co-ownership in which two or more persons hold equal, undivided interests in property with the right of survivorship. When one joint tenant dies, their interest automatically passes to the surviving joint tenants.
A leasehold estate grants the right to possess and use property for a defined period of time, without conferring ownership.
A life estate is a freehold estate that grants ownership rights for the duration of someone's life.
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