What typically happens at the end of a ground lease?

At the end of a ground lease, the lessor typically takes back the land and any improvements made by the lessee. This is a fundamental characteristic of ground leases, which are long-term arrangements often spanning 30 years or more. During the lease period, the lessee is granted the right to use the land and develop it, but ownership of the land remains with the lessor.

When the lease expires, the lessor regains complete control over the property, including any buildings or developments the lessee constructed during the term of the lease. This principle ensures that the landowner benefits from any improvements made during the lease, thereby enhancing their property value after the lease ends.

Options suggesting that the lessee retains improvements or can sell the lease do not align with the typical terms of a ground lease, where the land and enhancements revert to the lessor. Additionally, automatic renewal is not a standard aspect of ground leases, as the terms usually define specific durations and conditions for renewal, if applicable.