Definition
A long-term lease (often 99 years) where the tenant owns the building but rents the land beneath it, common for commercial properties and some condominiums. It's the real estate equivalent of building your castle on someone else's sand.
Example Usage
The fast-food chain entered a ground lease for the corner lot, building their restaurant while paying annual rent for the land itself.
Origin
British property law tradition dating to feudal land tenure, adapted into modern commercial real estate
Fun Fact
Much of Honolulu sits on ground leases, with homeowners owning structures but not the land, creating unique challenges when leases expire and must be renegotiated.
Source: Commercial real estate leasing standards
Related Terms
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