Ground Lease Agreement Cost

Clients Rate Lawyers on our Platform 4.9/5 Stars
based on 2,801 reviews

Jump to Section

Need help with a Ground Lease?

CREATE A FREE PROJECT POSTING
Post Project Now

What does a ground lease agreement cost? This is a question often asked by property owners considering leasing their land. So let’s explore this question and review some general information about ground leases and how they benefit both parties.

How Much Does a Ground Lease Agreement Cost?

A ground lease, sometimes called a land lease contract, is a lease agreement between a property owner and a tenant who wishes to develop the property. Ground leases are long-term lease agreements and often have durations of 50 to 99 years.

The purpose of a land lease is to allow a tenant to develop the land for commercial use. At the same time, the landowner retains ownership of the property.

A property owner may be interested in a ground lease for the following benefits:

  • Avoiding capital gains that come with the sale of property
  • Generate a steady income
  • Retain property ownership rights

Tenants benefit from ground leases in these ways:

  • Ability to build on land in a prime location they wouldn’t have otherwise been able to buy
  • Requires no down payment like a property purchase
  • Ground lease expenses are tax deductible

Real estate lawyers can draft a rental lease agreement that protects a landlord and their property and abides by all applicable laws to hold up in court.

Ground leases are most often found in the commercial sphere, so if a property owner wishes to hire an attorney to draft their lease agreement, they will need a real estate lawyer familiar with commercial property leases.

An experienced lawyer will know what terms and conditions need to be included in a ground lease to protect the landlord from liability and ensure they are getting the most out of their land.

Based on ContractsCounsel’s marketplace data, the average cost of a ground lease agreement project is $921.67.

What’s Included in a Ground Lease Agreement?

The most important information that needs to be covered in a ground lease is:

  • Which party owns the land
  • Which party owns the building that the tenant is planning to construct
  • Who is responsible for improvements to the property

In addition to these important clauses, many ground leases will also cover the following issues:

  • Party information
  • Monthly rent payments
  • Default conditions
  • Financing conditions
  • Landlord rights and obligations
  • Tenant rights and obligations
  • Lease terms and conditions
  • Title insurance
  • Use provisions

Consult with your attorney if you are unsure what needs to be included in your ground lease. Your lawyer will ensure the ground lease covers all pertinent lease agreement topics and adheres to state laws.

Meet some lawyers on our platform

John P.

7 projects on CC
View Profile

Brad H.

8 projects on CC
View Profile

Elbert T.

1 project on CC
View Profile

Max M.

105 projects on CC
View Profile

Types of Ground Lease Agreements

There are two main types of ground lease agreements: subordinated and unsubordinated.

  1. Subordinated ground lease. In a subordinated ground lease, the landlord agrees to allow the property deed to be collateral for loans for construction and improvements. Subordinated leases typically have a higher monthly rent because the landlord is taking on additional risk. However, property owners understand that construction often increases land value, so the risk is worth the reward of more valuable property.
  2. Unsubordinated ground lease. An unsubordinated lease provides the highest protection for the property owner. For example, if the tenant takes out a loan for a building that defaults, the lender cannot foreclose on the land. They can only go after the tenant’s assets.

Examples of Ground Lease Agreement Projects

Ground Lease Agreement Drafting Services

Many property owners hire commercial real estate lawyers to draft their ground lease agreement. Unfortunately, these lease agreements can be complex documents. The landowner may be left vulnerable to liability or tax issues if any terms are missing.

A licensed attorney familiar with ground leases will meet with the property owner to learn about their land and goals for the lease.

The lawyer will learn about the terms the landowner wishes to include in their contract and the type of contract they are looking to execute. Once the lawyer has all pertinent information, they can begin drafting a customized ground lease.

Rental Lease Agreement Review Services

When tenants sign a ground lease, they make a very important business decision. Ground leases can sometimes have a duration of 99 years, so the tenant needs to be aware of the commitment they are making.

Before signing a ground lease, many tenants hire an attorney to review the lease to ensure it is drafted correctly and is fair.

Lease agreements often favor the drafter – in this case, the landlord. However, a tenant’s attorney will review the lease with the tenant’s best interests in mind to ensure the deal is fair and the tenant is protected under the contract.

Ground Lease Agreement Drafting Cost

Ground lease agreement costs can vary based on the document’s length, complexity, and how many custom terms need to be included in the contract.

ContractsCounsel’s marketplace data shows the average ground lease agreement drafting costs are $957.50 across all states and industries.

Ground Lease Agreement Review Cost

Suppose a tenant decides to hire a lawyer to review a ground lease. In that case, they will be responsible for the legal fees incurred. In addition, the lawyer will charge for their time and legal knowledge reviewing the contract and meeting with the client.

ContractsCounsel’s marketplace data shows the average ground lease agreement review costs are $850.00 across all states and industries.

How Do Lawyers Charge for Ground Lease Agreements?

Hourly Rates for Ground Lease Agreements

Hourly rate fee structures are a common way that lawyers bill their clients. Under this fee agreement, the attorney provides their client with their hourly rate.

If the client agrees, the lawyer will begin working on the project while keeping track of the time spent on the job. Once the task is complete, the lawyer will bill the client for the number of hours spent working on the case.

The marketplace data for ContractsCounsel shows that the average hourly rate for a commercial real estate lawyer ranges from $250 - $400 per hour.

Flat Fee Rates for Ground Lease Agreements

When a client hires an attorney for a specific task, like drafting a ground lease agreement, instead of charging an hourly fee, the attorney may choose to use a flat fee rate fee.

To determine the project's total cost, an attorney will estimate the time it should take to complete the task and then apply their hourly rate.

Clients tend to prefer a flat rate because they know the cost of their legal fees upfront. Lawyers, however, run the risk of underestimating the time a project may take and undercharging for their work.

ContractsCounsel's marketplace data shows the average flat fee rate for a ground lease agreement is $921.67.

Get Help with a Ground Lease Agreement

Do you need help with a ground lease project? If so, post a project in ContractsCounsel’s marketplace to receive flat fee bids from business lawyers to handle your project. All lawyers on the ContractsCounsel’s platform are vetted by our team to make sure you are provided with top tier service.

How ContractsCounsel Works
Hiring a lawyer on ContractsCounsel is easy, transparent and affordable.
1. Post a Free Project
Complete our 4-step process to provide info on what you need done.
2. Get Bids to Review
Receive flat-fee bids from lawyers in our marketplace to compare.
3. Start Your Project
Securely pay to start working with the lawyer you select.

Meet some of our Lawyers

Melissa L. on ContractsCounsel
View Melissa
Member Since:
October 26, 2020

Melissa L.

Attorney
Free Consultation
Get Free Proposal
Des Moines, IA
14 Yrs Experience
Licensed in IA
City University School of Law

Seasoned negotiator, mediator, and attorney providing premier legal advice, services, and representation with backgrounds in education, healthcare, and the restaurant and manufacturing industries

Ross F. on ContractsCounsel
View Ross
Member Since:
October 27, 2020

Ross F.

Managing Partner
Free Consultation
Get Free Proposal
Bedford, New Hampshire
11 Yrs Experience
Licensed in MA, NH
University of Arizona

I am an experienced technology contracts counsel that has worked with companies that are one-person startups, publicly-traded international corporations, and every size in between. I believe legal counsel should act as a seatbelt and an airbag, not a brake pedal!

Annais N. on ContractsCounsel
View Annais
Member Since:
October 27, 2020

Annais N.

Attorney
Free Consultation
Get Free Proposal
Miami, FL
9 Yrs Experience
Licensed in FL, LA, MD
Loyola University New Orleans College of Law

Attorney (FL, LA, MD) | Commercial Real Estate Attorney and previous Closing Manager (Driving Growth from $10M to $50M+/month).

John H. on ContractsCounsel
View John
Member Since:
November 10, 2020

John H.

Attorney-at-Law
Free Consultation
Get Free Proposal
Mobile, AL
11 Yrs Experience
Licensed in AL
Thomas Goode Jones School of Law

John Daniel "J.D." Hawke is an experienced attorney with a law practice in Mobile, Alabama. He was born in Fairhope, Alabama and after earning his undergraduate degree at Auburn University, he received a law degree from Thomas Goode Jones School of Law in 2010. After law school, he formed the Law Office of J.D. Hawke LLC and over the last decade he has fought incredibly hard for each and everyone of his clients. His practice focuses on representing people facing criminal charges and clients dealing with family law matters. In addition to criminal defense and domestic relations cases, he also regularly handles contract disputes, personal injury cases, small business issues, landlord/tenant disputes, document drafting, and estate planning. He is licensed to practice law in the State of Alabama and the United States District Court for the Southern District of Alabama.

Thomas C. on ContractsCounsel
View Thomas
Member Since:
October 30, 2020

Thomas C.

Partner
Free Consultation
Get Free Proposal
Denver, CO
9 Yrs Experience
Licensed in CO
University of Colorado Law School

Thomas Codevilla is Partner at SK&S Law Group where he focuses on Data Privacy, Security, Commercial Contracts, Corporate Finance, and Intellectual Property. Read more at Skandslegal.com Thomas’s clients range from startups to large enterprises. He specializes in working with businesses to build risk-based data privacy and security systems from the ground up. He has deep experience in GDPR, CCPA, COPPA, FERPA, CALOPPA, and other state privacy laws. He holds the CIPP/US and CIPP/E designations from the International Association of Privacy Professionals. Alongside his privacy practice he brings a decade of public and private transactional experience, including formations, financings, M&A, corporate governance, securities, intellectual property licensing, manufacturing, regulatory compliance, international distribution, China contracts, and software-as-a-service agreements.

Michael B. on ContractsCounsel
View Michael
Member Since:
October 30, 2020

Michael B.

Attorney
Free Consultation
Get Free Proposal
Illinois
12 Yrs Experience
Licensed in IL, MN, WI
University of the Pacific

Michael has extensive experience advising companies from start-ups to established publicly-traded companies . He has represented businesses in a wide array of fields IT consulting, software solutions, web design/ development, financial services, SaaS, data storage, and others. Areas of expertise include contract drafting and negotiation, terms of use, business structuring and funding, company and employee policies, general transactional issues as well as licensing and regulatory compliance. His prior experience before entering private practice includes negotiating sales contracts for a Fortune 500 healthcare company, as well as regulatory compliance contracts for a publicly traded dental manufacturer. Mr. Brennan firmly believes that every business deserves a lawyer that is both responsive and dependable, and he strives to provide that type of service to every client.

Lyndsey G. on ContractsCounsel
View Lyndsey
Member Since:
October 30, 2020

Lyndsey G.

Attorney
Free Consultation
Get Free Proposal
Roseville, MN
8 Yrs Experience
Licensed in MN
Mitchell Hamline College of Law

Attorney of 6 years with experience evaluating and drafting contracts, formation document, and policies and procedures in multiple industries. Expanded to estate planning last year.

George O. on ContractsCounsel
View George
Member Since:
November 2, 2020

George O.

Managing Attorney
Free Consultation
Get Free Proposal
Houston, Texas
15 Yrs Experience
Licensed in TX
South Texas College of Law

George is a lifelong Houston resident. He graduated from St. Thomas High School and then Texas A&M University. He obtained his Doctor of Jurisprudence from South Texas College of Law in 2007. He is experienced in real estate, estate planning & probate, civil/commercial matters, personal, injury, business matters, bankruptcy, general counsel on-demand, and litigation. He is active in the community serving as past-president of the St. Thomas Alumni Board, a current member of the Dads Club Aquatic Center Board of Directors, current member of the Dickinson Little Italy Festival of Galveston County Board of Directors, and former PTO President for Briarmeadow Charter School.

Ramsey T. on ContractsCounsel
View Ramsey
Member Since:
November 3, 2020

Ramsey T.

Founding Partner
Free Consultation
Get Free Proposal
New York
25 Yrs Experience
Licensed in NY
William and Mary

My clients are often small and medium size technology companies, from the "idea" stage to clients who may have raised a round or three of capital and need to clean up a messy cap table. I help with all legal matters related to growth that keep founders up at night - hiring people, allocating equity, dealing with shareholders and investors, client negotiations and early litigation counseling (before you need a litigator). I've seen a lot, and because I run my own business, I understand the concerns that keep you up at night. I’ve been through, both on my own and through other clients, the “teething” pains that will inevitably arise as you scale-up – and I’m here to help you. I have over 20 years international experience devising and implementing robust corporate legal strategies and governance for large multinationals. I now focus on start-ups and early/medium stage technology companies to enable a sound legal foundation for your successful business operations. Many of my clients are international with US based holding companies or presences. My 17 years abroad helps me "translate" between different regimes and even enabling Civil and Common Law lawyers to come together. Regularly, I handle early stage financings including Convertible Notes, Seed and Series A/B financings; commercial and technology contracts; international transactions; tax; mergers and acquisitions.

Sammy N. on ContractsCounsel
View Sammy
Member Since:
November 4, 2020

Sammy N.

Attorney
Free Consultation
Get Free Proposal
Raleigh, NC
3 Yrs Experience
Licensed in NC
Campbell University School of Law

Sammy Naji focuses his practice on assisting startups and small businesses in their transactional and litigation needs. Prior to becoming a lawyer, Sammy worked on Middle East diplomacy at the United Nations. He has successfully obtained results for clients in breach of contract, securities fraud, common-law fraud, negligence, and commercial lease litigation matters. Sammy also counsels clients on commercial real estate sales, commercial lease negotiations, investments, business acquisitions, non-profit formation, intellectual property agreements, trademarks, and partnership agreements.

Brad H. on ContractsCounsel
View Brad
Member Since:
November 5, 2020

Brad H.

Principal
Free Consultation
Get Free Proposal
Raleigh, NC
10 Yrs Experience
Licensed in NC
University of North Carolina

Brad is a business attorney with experience helping startup and growing companies in a variety of industries. He has served as general counsel for innovative companies and has developed a broad knowledge base that allows for a complete understanding of business needs.

Find the best lawyer for your project

Browse Lawyers Now

Want to speak to someone?

Get in touch below and we will schedule a time to connect!

Request a call