A ground lease is a type of long-term lease agreement that allows the tenant to build on and make significant improvements to the leased property. Ground leases usually last between 50-99 years, and generally stipulate that the property and all improvements made during the lease will revert to the landlord after the termination of the lease. In general, ground leases are the most similar to triple net leases, or bond leases, as they require a tenant to pay for property taxes, insurance, maintenance, building repairs, and all other associated costs with operating the property.

Most traditional lease agreements provide some ability for a tenant to assign— or transfer, their lease obligation to another tenant. This is also the case in most ground lease agreements, but, since these leases are much longer term and usually involve significantly larger amounts of money, stipulations may be complex. Unlike subleasing, in which the original tenant typically still collects rent from the new tenant, in a lease assignment, a direct relationship is created between the new tenant and the landlord. However, original tenant may still carry some liability should the new tenant default on their lease.

Ground leases provide significant financial flexibility for larger organizations, as they do not require a down payment and can help free up capital for further expansion plans. Additionally, ground leases allow landlords to generate a certain degree of income/profit while still keeping the rights to the land, and potentially selling the property for a profit when the tenant’s ground lease is up.

Ground leases are also similar to triple net leases, as they require a tenant to pay for property taxes, insurance, maintenance, building repairs, and all other associated costs with operating the property.

Ground leases aren't for everyone; they're especially ill-suited for small businesses, start-ups, and commercial property investors who wish to flip their property within in a reasonable time-frame. Additionally, ground leases require a tenant to pay for property taxes, insurance, maintenance, building repairs, and all other associated costs with operating the property. This can be a significant financial burden for tenants, and may not be feasible for some businesses.

Ground leases usually last between 50-99 years, and generally stipulate that the property and all improvements made during the lease will revert to the landlord after the termination of the lease. In general, ground leases are the most similar to triple net leases, or bond leases, as they require a tenant to pay for property taxes, insurance, maintenance, building repairs, and all other associated costs with operating the property. Most traditional ground lease agreements also provide some ability for a tenant to assign— or transfer, their lease obligation to another tenant. This is also the case in most ground lease agreements, but, since these leases are much longer term and usually involve significantly larger amounts of money, stipulations may be complex. Unlike subleasing, in which the original tenant typically still collects rent from the new tenant, in a lease assignment, a direct relationship is created between the new tenant and the landlord. However, original tenant may still carry some liability should the new tenant default on their lease.

Ground leases in commercial real estate are subject to the same tax implications as any other type of real estate investment. The income generated from the ground lease is taxable, and the expenses associated with the lease are deductible. The tax implications of a ground lease will depend on the specific terms of the lease, such as the length of the lease, the amount of rent paid, and any other fees associated with the lease. It is important to consult with a qualified tax professional to ensure that all of the tax implications of a ground lease are properly accounted for.