How ground leases offer stable income and control for property owners
Ground Leases Explained
A ground lease allows a tenant to lease land (but not the building) for a long period — typically 20–99 years. The tenant develops the property, while the landowner enjoys stable income and land appreciation.
Benefits for Landowners
- Long-term passive income stream
- Maintain ownership of valuable land
- Tenant responsible for construction, maintenance, insurance, and taxes
Benefits for Tenants
- Access to prime land without large upfront cost
- Ability to build custom facilities (retail, gas stations, hotels)
- Opportunity for long-term business stability
Florida Examples
- Retail pads near Brightline stations leased for QSR chains
- Land near highway exits leased to fueling and convenience chains
- Urban parcels in Miami and Orlando with ground leases for mixed-use developments
Risks to Consider
- Complex lease structuring
- Limited control for tenant
- Appraisal and financing challenges
Own land in Florida and considering a ground lease strategy? Schedule a consultation with The List Orlando today.
