Field Guide to Ground Leases
(Updated January 2007)
What terms and conditions should be considered when entering into a ground lease? What are the advantages of ground leases? What impact do these leases have on submerged land, university property, billboards, and improvements on public land? Find out in this updated Field Guide! (D. Foligno, Project Specialist)
Contents:
Ground Lease Basics | Pros & Cons | Valuation Considerations | Billboards & Ground Leases | Books, eBooks & Other Resources
Ground Lease Terminology
Term of lease
Feasibility period
Permitted use & development
Leasehold mortgagee provisions
Casualty & condemnation
Exit strategies
Source: Ground lease primer: "dealing" with the intimidating ground lease, (Real Estate Finance, Dec. 2003). Q
Ground Lease Basics 
Ground lease 101, (Realty Times, Oct. 24, 2006).
Ground control, (Commercial Investment Real Estate, May/June, 2006).
Groundwork for ground leases, (Dudnick, Detwiler, Rivin & Stikker, LLP, Oct. 2005).
Ground leasing from a municipality for retail development, (Property Writes, Second Quarter, 2005).
Ground lease primer: "dealing" with the intimidating ground lease, (Real Estate Finance, Dec. 2003). Q
Why your ground lease should be financeable, (Financial Executive, Nov. 2003). Q
HUD ground lease mandatory provisions, (HUD.gov, Jan. 2003).
On solid ground, (Commercial Investment Real Estate, Sept./Oct. 2000).
Pros & Cons
Ground control: owners and developers unearth opportunities through creative land leases, (Commercial Investment Real Estate, May/June 2006).
Is the sky really falling on leasehold mortgagees? Ground-lease financing after Qualitech, (Real-Estate-Law.com, 2004).
Leasehold interests offer alternative 1031 exchange options, (Commercial Investment Real Estate, Nov./Dec. 2003).
Ground leases can fill gaps in deals with valuation differences, (Hotel and Motel Properties, Aug. 2002). Q
Clearing the hurdle of lease renewal options, (Journal of Property Management, July/Aug. 2000). Q
Are lease renewal options a good idea?, (Real Estate Issues, Fall 1999). Q
Valuation Considerations
An equilibrium analysis of real estate leases, (The Journal of Business, July 2005). Q
Alternative deal structures can help bridge valuation gaps, (Hotel and Motel Management, Feb. 7, 2005).
Valuation of submerged lands, (The Appraisal Journal, July 2001).
Constitutional issues: Leasehold interests, (Assessment Journal, Jan./Feb. 2001).
How to value commercial improvements in a national park, (Real Estate Issues, Winter 2000/2001).
Discounted cash flow analysis and long-term leases, (Appraisal Journal, Apr. 1999).
Billboards & Ground Leases
The takings issue in billboard control, (Citizens for a Scenic Florida, June 2003).
Billboard valuation: fundamental asset allocation issues, (The Appraisal Journal, Apr. 2003). Q
Digging up the dirt on land sales: these tips for buyers and owners help increase profitability, (Commercial Investment Real Estate, Nov./Dec. 2001).
Valuation of billboard structures, (The Appraisal Journal, Oct. 1999). Q
Billboard valuation without distortion: The Heathrow decision, (The Appraisal Journal, July 1999). Q
Appraising outdoor advertisiing signs: A critical analysis, (The Appraisal Journal, July 1998). Q
eBooks & Other Resources
Books, Videos, Research Reports & More
The resources below are available for loan through Information Central. Up to three books, tapes, CDs and/or DVDs can be borrowed for 30 days from the Library for a nominal fee of $10. Call Information Central at 800.874.6500 for assistance.
Economic forces shaping unsubordinated groundlease: part 1 - lender interests, (Real Estate Review, Winter 1999).
Economic forces shaping unsubordinated groundlease: part 2, (Real Estate Review, Spring 1999).
Economic forces shaping unsubordinated groundlease: part 3, (Real Estate Review, Summer 1999).
Economic forces shaping unsubordinated groundlease: part 4, (Real Estate Review, Summer 1999).
Field Guides & More
These Field Guides and other resources in the Virtual Library may also be of interest:
>> Have an idea for a new Field Guide? Click here to send us your suggestions!
The inclusion of links on this Field Guide does not imply endorsement by the National Association of REALTORS®. NAR makes no representations about whether the content of any external sites which may be linked to this Field Guide complies with state or federal laws or regulations or with applicable NAR policies. These links are provided for your convenience only and you rely on them at your own risk.
