Ground Lease
Understand ground leases in Canadian real estate — what they are, how they work, and their advantages for landlords and tenants.
August 08, 2025
What is a Ground Lease?
A ground lease is a long-term lease agreement in which a tenant leases the land from a landlord but owns and is responsible for any improvements made on it.
Why Ground Leases Matter in Real Estate
In Canadian commercial real estate, ground leases allow tenants to develop property without purchasing the land.
Key points:
- Terms often range from 20 to 99 years
- Improvements typically revert to the landowner at lease end
- Provides stable, long-term income for landlords
Understanding ground leases helps tenants and landlords align long-term investment goals.
Example of a Ground Lease in Action
The retailer entered a 50-year ground lease to build a flagship store on the leased land.
Key Takeaways
- Long-term lease of land, not buildings
- Tenant owns improvements during lease term
- Often reverts improvements to landlord at lease end
- Provides landlords with steady income
- Popular for commercial and institutional projects
Interior and exterior photos. (ReStays Ottawa)
An overview of ReStays and ReResidences. (TD Cornerstone, Cushman & Wakefield Ottawa)
