Ground Leasing

Ground leases allow tenants to develop commercial property according to their needs. Generally speaking, these are extended leases, granting ownership of capital improvements made to the property owner.

Our firm helps California landowners and tenants with a number of related issues.

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Our Attorney Advises OnGround Leases in California

Owners of retail stores, restaurants, and other businesses often engage in ground leases in favor of purchasing property, Ground leases allow tenants to make and use capital improvements while they occupy the space. Once the lease is concluded, the improvements are retained by the owner.

Nonetheless, ground leases can make more financial sense for businesses than buying, especially in favorable geographical areas where real estate available for purchase is scarce or would tie up too much capital investment. We advise both commercial landlords and tenants on ground lease issues.

Our Attorneys Draft Ground Leases With Close Attention To Detail

Ground lease negotiation can be a costly and time-consuming endeavor. Our attorneys pay close attention to detail when drafting these agreements, adjusting the terms of the agreement as well as rights involved according to our clients’ present and future needs. We make sure there is no room for error before signing on behalf of your business or property.

A ground lease involves many complicated elements that must all come together seamlessly; otherwise there’s a chance of an expensive legal battle down the road. We think ahead when negotiating these agreements to minimize this possibility for our clients.

Our Attorneys Help With Financing Issues Related to Leases

Business owners typically finance the improvements necessitated for their successful use of the property; in some cases lenders can acquire an interest in the property in return for their capital investment. When this situation is anticipated, ground leases can stipulate the interests of the owner of the land are second to the lender’s.

In other cases an ‘unsubordinated’ ground lease (in which the landowner retains first position in the claim hierarchy) is possible and advisable. Our attorneys can navigate this complexity on behalf and to the best interests of client land-owners, leasers or lenders.