What is Ground Lease?
A ground lease is a long-term lease (often 50–99 years) in which a tenant leases the land and builds or operates improvements on it, while the landowner retains ownership of the land. At lease end, the improvements typically revert to the landowner. Ground leases let businesses control a site without buying the land outright.
Example: A fast-food chain signs a 50-year ground lease, builds its own restaurant on the leased parcel, and pays the landowner rent for the land underneath.