Ground Lease

Landlord (Fee Owner): [Name] · Tenant: [Name] Property: [Address/Legal Description] · Date: [Date]

1. Lease of Land

Landlord leases the land described above to Tenant, who may construct, own, and operate improvements on it, subject to the terms of this Agreement.

2. Term

This ground lease runs for [Duration — commonly long-term, e.g. 50-99 years], beginning [Date], [with renewal options as described].

3. Rent

Ground rent: [Amount] per [month/year], subject to [escalation schedule — fixed increases, CPI-indexed, or periodic market rent resets].

4. Tenant's Improvements

Tenant may construct [Description of permitted improvements], subject to Landlord's approval of plans [if required], and Tenant owns the improvements during the lease term.

5. Financing

[State whether Tenant may mortgage its leasehold interest to finance construction, and Landlord's rights (e.g. subordination, notice of default) with respect to Tenant's lender.]

6. End of Term — Reversion

Upon expiration or termination, [ ] ownership of improvements reverts to Landlord at no cost, [ ] Tenant must remove improvements and restore the land, [ ] other arrangement: [Specify].

7. Default

[Cure periods and remedies for Tenant's default, including any protections for Tenant's lender to step in and cure.]

Landlord: ______________________ Date: ____________ Tenant: ______________________ Date: ____________

*This document is provided for informational and educational purposes only and does not constitute legal advice. What happens to the improvements at the end of the term (Section 6) is the single most consequential term in a ground lease — a tenant who builds a building on leased land needs absolute clarity on whether they'll own it, lose it, or have to remove it decades from now.*