What Is A Ground Lease Agreement

Many lenders do not lend to build commercial buildings on basic leases unless they resort to take control of the property in the event of a tenant default. Tenants typically assume responsibility for all financial aspects of a hereditary building right, including rent, taxes, construction, insurance, and financing. Tenants also benefit from an NNN lease agreement, as they can often find a desirable location for their business that would otherwise not be available to them without having to finance the purchase of a property themselves. Leasehold tenants can also benefit from certain tax benefits that they can enjoy, such as . B the deduction of their ground lease payments from their business income. As with a regular lease, two parties are involved – the lender or landlord/owner and the tenant or tenant.