Property Ownership

What is a 'ground lease' in commercial real estate?

AA lease for agricultural land only
BA long-term lease of land where the tenant constructs and owns the building, paying rent to the landowner✓ Correct
CA lease for underground parking facilities
DA lease of the first floor of a commercial building

Explanation

A ground lease is a long-term lease (often 50-99 years) of land only, where the tenant constructs and owns the improvements on the land. The tenant pays rent to the landowner, and at the lease's expiration, the improvements typically revert to the landowner.

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