Property Management

In Michigan, a 'ground lease' for commercial property typically features:

AThe tenant purchasing the land outright
BThe tenant leasing the land only (not the building) for a long term, often 50-99 years, and the tenant constructs their own building on the leased land✓ Correct
CThe landlord providing a fully constructed building
DA short-term lease of less than 5 years

Explanation

A ground lease in Michigan is a long-term lease of land only (not the improvements), typically 50-99 years. The tenant constructs and owns improvements on the land during the lease term; upon expiration, ownership of improvements may revert to the landowner.

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