ground-lease

name	ground-lease
title	Ground Lease Agreement
description	Drafts U.S. ground lease agreements for long-term land leases (49–99 years) where tenants construct improvements on landlord-retained fee property. Covers term structures, leasehold mortgage protections, rent escalation, improvement ownership/reversion, subordination, condemnation, and environmental allocation. Use when drafting, negotiating, or reviewing ground leases for commercial real estate (retail, office, hospitality, mixed-use, public-private partnerships).
author	CaseMark
author_url	https://github.com/CaseMark/skills/tree/main/skills/legal/ground-lease
license	Apache-2.0
version	0.1.0
execution_mode	open
jurisdiction	us
practice	real-estate
language	en

Ground Lease Agreement

Drafts a financeable ground lease governing long-term land use where the tenant constructs improvements on landlord-retained fee, with improvements reverting to landlord upon expiration.

Prerequisites

Gather before drafting:

1. Parties — legal names, entity types, formation jurisdictions, addresses (landlord, tenant, any guarantor)
2. Property — legal description (metes and bounds, lot/block, plat), street address, county/state, title/survey exceptions
3. Economics — initial base rent, escalation method, rent commencement trigger, any percentage/participation rent
4. Development — intended use, improvement scope, construction timeline, target CO date
5. Financing — subordinate vs. unsubordinate to tenant's financing; anticipated lender(s)
6. Special terms — LOI/term sheet deal points, governmental approvals, institutional/public-entity constraints

Agreement Sections

1. Parties, Recitals & Property

• Entity details; identify SPE structure and parent guaranty
• Recitals: fee ownership rationale, development intent, project scope
• Legal description controls over street address
• Appurtenant rights (access, utility, parking, signage); reservations (minerals, prior easements) carved out
• Address air rights / subsurface rights if bifurcated

2. Lease Term

Element	Range	Notes
Initial term	49–99 yrs	Based on financing needs and improvement useful life
Renewal options	1–3 options, 10–25 yrs each	12–24 mo notice; no uncured default; specify rent reset method
Commencement	Execution or conditions precedent	CPs: zoning, financing commitment, landlord delivery
Early termination	Rarely granted	If included: notice, fee, improvement treatment

3. Rent & Escalation

Base rent typically 5–8% of appraised land value.

Method	Key Points
Fixed steps	Interval (e.g., 5 yrs), step-up %, cumulative or not
CPI	Index (CPI-U), base period, interval, cap/floor