| 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:
- Parties — legal names, entity types, formation jurisdictions, addresses (landlord, tenant, any guarantor)
- Property — legal description (metes and bounds, lot/block, plat), street address, county/state, title/survey exceptions
- Economics — initial base rent, escalation method, rent commencement trigger, any percentage/participation rent
- Development — intended use, improvement scope, construction timeline, target CO date
- Financing — subordinate vs. unsubordinate to tenant's financing; anticipated lender(s)
- 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 |
