--- title: Ground Lease Definition | What Is A Ground Lease? description: Ground lease is a lease of the land only, on which the tenant usually owns a building or is required to build as specified in the lease. image: https://www.realized1031.com/hubfs/social-suggested-images/Realized_Glossary_Graphic-2.jpg --- [![Realized 1031 Exchange Marketplace](https://www.realized1031.com/hs-fs/hubfs/Images/Brand/Logo/Realized/Realized-Logo-Black.png?width=240&height=80&name=Realized-Logo-Black.png "Realized 1031 Logo") ](https://www.realized1031.com/) - Better Business Bureau Rating: **A+** - [FINRA BrokerCheck](https://brokercheck.finra.org/firm/summary/22333) - [Call](tel:1-877-797-1031) **(877) 797-1031** # Ground Lease Ground lease is a lease of the land only, on which the tenant usually owns a building or is required to build as specified in the lease. Ground leases are almost always long-term net leases.  For example, a landowner may allow a developer to construct a retail property on the landowner’s property. The developer would be entitled to the net income derived from the retail property, but would also be responsible for paying ground rent to the landowner for use of the property. Reasons for a ground lease can be when a landowner believes that the land has long-term appreciation potential but wants to generate current income without having to sell the land or when a landowner does not possess the expertise to develop a building themselves but wishes to retain the land. A ground lease structure can also benefit the developer as the overall project cost would be reduced as there is not a need to purchase the land on which the project will be built. See [leasehold interest](https://www.realized1031.com/glossary/leasehold-interest). Download The Guide To Net Lease Properties [![The Investor's Guidebook To Net Lease](https://www.realized1031.com/hs-fs/hubfs/Images/UI/graphics/composites/Net-Lease-eBook-250.png?width=250&height=250&name=Net-Lease-eBook-250.png "Learn More About Net Lease ...") ](https://www.realized1031.com/glossary/ground-lease#blogform) Download eBook ---   --- ### The Investor's Guidebook To Net Lease ![Download The Guide To Net Lease Properties](https://www.realized1031.com/hs-fs/hubfs/Images/UI/graphics/composites/Net-Lease-eBook-550.jpg?width=550&height=650&name=Net-Lease-eBook-550.jpg) Learn More About Net Lease Investments. By providing your email and phone number, you are opting to receive communications from Realized. If you receive a text message and choose to stop receiving further messages, reply STOP to immediately unsubscribe. Msg & Data rates may apply. To manage receiving emails from Realized visit the Manage Preferences link in any email received. Search #### Realized - 500 W 13th Street Austin, TX 78701 - (877) 797-1031 ##### [Contact Us](https://www.realized1031.com/contact-us) - [![Realized on Facebook](https://www.realized1031.com/hs-fs/hubfs/Images/UI/Social/Icons/Mix/social-facebook-whiterev.png?width=60&height=60&name=social-facebook-whiterev.png)](https://www.facebook.com/Realized/) - [![Realized on LinkedIn](https://www.realized1031.com/hs-fs/hubfs/Images/UI/Social/Icons/Mix/social-linkedin-whiterev.png?width=60&height=60&name=social-linkedin-whiterev.png)](https://www.linkedin.com/company/realized/) - [![Realized on YouTube](https://www.realized1031.com/hs-fs/hubfs/Images/UI/Social/Icons/Mix/social-youtube-whiterev.png?width=60&height=60&name=social-youtube-whiterev.png)](https://www.youtube.com/c/Realized1031?sub_confirmation=1) - [![Realized Holdings, Inc. BBB Business Review](https://www.realized1031.com/hs-fs/hubfs/Images/professional-assoc/bbb/RZH2-bbb-seal.png?width=40&height=65&name=RZH2-bbb-seal.png)](http://www.bbb.org/central-texas/business-reviews/real-estate-investors/realized-holdings-llc-in-austin-tx-1000112948/#bbbonlineclick) - [![FEA Logo](https://www.realized1031.com/hs-fs/hubfs/Images/professional-assoc/fea/RZH2-fea-logo.png?width=82&height=65&name=RZH2-fea-logo.png "FEA Logo")](https://www.1031.org) SECURITIES DISCLOSURE Realized1031.com is a website operated by Realized Technologies, LLC, a wholly owned subsidiary of Realized Holdings, Inc. (“Realized Holdings”). Securities and/or Investment Advisory Services may be offered through Registered Representatives or Investment Advisor Representatives of Realized Financial, Inc. ("Realized"), a broker/dealer, member [FINRA](https://www.finra.org)/[SIPC](https://www.sipc.org/), and registered investment adviser. Realized is a subsidiary of Realized Holdings, Inc. ("Realized Holdings"). Check the background of this firm on [FINRA's BrokerCheck](https://brokercheck.finra.org/firm/summary/22333). Hypothetical example(s) are for illustrative purposes only and are not intended to represent the past or future performance of any specific investment. Investing in alternative assets involves higher risks than traditional investments and is suitable only for sophisticated investors. Alternative investments are often sold by prospectus that discloses all risks, fees, and expenses. They are not tax efficient and an investor should consult with his/her tax advisor prior to investing. Alternative investments have higher fees than traditional investments and they may also be highly leveraged and engage in speculative investment techniques, which can magnify the potential for investment loss or gain and should not be deemed a complete investment program. The value of the investment may fall as well as rise and investors may get back less than they invested. This site is published for residents of the United States who are accredited investors only. Registered Representatives and Investment Advisor Representatives may only conduct business with residents of the states and jurisdictions in which they are properly registered. Therefore, a response to a request for information may be delayed until appropriate registration is obtained or exemption from registration is determined. Not all of services referenced on this site are available in every state and through every representative listed. For additional information, please contact the Realized Compliance department at 512-472-7171 or info@realized1031.com. - [Terms & Conditions](https://www.realized1031.com/terms-and-conditions) - [Privacy Policy](https://www.realized1031.com/privacy-policy) - [Form CRS](https://www.realized1031.com/hubfs/common-files/disclosures/FormCRS.pdf) - [ADV 2A](https://www.realized1031.com/hubfs/common-files/disclosures/ADV2A.pdf) - [Reg BI Disclosures](https://www.realized1031.com/hubfs/common-files/disclosures/RegBI.pdf) -   © 2026 Realized Holdings, Inc. ```json { "@context" : "http://schema.org/", "@type" : "BlogPosting", "articleBody" : "Ground lease is a lease of the land only, on which the tenant usually owns a building or is required to build as specified in the lease. Ground leases are almost always long-term net leases. For example, a landowner may allow a developer to construct a retail property on the landowner’s property. The developer would be entitled to the net income derived from the retail property, but would also be responsible for paying ground rent to the landowner for use of the property. Reasons for a ground lease can be when a landowner believes that the land has long-term appreciation potential but wants to generate current income without having to sell the land or when a landowner does not possess the expertise to develop a building themselves but wishes to retain the land. A ground lease structure can also benefit the developer as the overall project cost would be reduced as there is not a need to purchase the land on which the project will be built. See leasehold interest.", "author" : { "@type" : "Organization", "email" : "marketing@realized1031.com", "name" : "The Realized Team", "url" : "https://www.realized1031.com/blog/author/the-realized-team" }, "dateModified" : "2022-07-18T15:27:34+0000", "datePublished" : "2022-07-18T15:27:34+0000", "description" : "Ground lease is a lease of the land only, on which the tenant usually owns a building or is required to build as specified in the lease. ", "headline" : "Ground Lease", "image" : { "@type" : "ImageObject", "height" : 627, "url" : "https://cdn2.hubspot.net/hubfs/733513/social-suggested-images/Realized_Glossary_Graphic-2.jpg", "width" : 1200 }, "mainEntityOfPage" : "https://www.realized1031.com/glossary/ground-lease", "name" : "Ground Lease", "publisher" : { "@type" : "Organization", "address" : { "@type" : "PostalAddress", "addressCountry" : "USA", "addressLocality" : "Austin", "addressRegion" : "TX", "postalCode" : "78701", "streetAddress" : "500 W 13th Street " }, "logo" : { "@type" : "ImageObject", "height" : 60, "url" : "http://www.realized1031.com/hubfs/Images/Brand/Logo/Realized/Realized-Logo-Black-No-Margin-296x60-AMP.png", "width" : 296 }, "name" : "Realized" } } ```