Ground Leases•8 min read•October 28, 2024
99-Year Ground Lease Explained
A deep dive into 99-year ground leases: why the term is common, how financing reacts, and where negotiations typically concentrate.
The “99-year” term is a market convention because it can provide long runway for tenant financing and operations while protecting long-term land ownership for the lessor.
Financing and Remaining Term
Lenders generally care about remaining term, reset language, and whether the ground lease is financeable. The structure should anticipate refinance cycles and potential sale of the leasehold.
Negotiation Hotspots
- Default remedies and cure periods
- Insurance and casualty provisions
- Assignment and transfer restrictions
- Rent reset methodology (if present)
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