New York, NY – Commercial real estate attorney in New York Peter Zinkovetsky, founder and managing partner of Avenue Law Firm (https://www.avenuelawfirm.com/ground-lease-vs-land-lease/), is highlighting the practical implications of ground lease and land lease structures for investors, developers, and business owners navigating New York City’s competitive real estate market. Drawing on the firm’s work with high-value commercial and mixed-use properties throughout Manhattan and other boroughs, Zinkovetsky is underscoring how these long-term leasing arrangements can shape investment risk, operating costs, and long-range planning.
As a commercial real estate attorney in New York, Zinkovetsky explains that the terms “ground lease” and “land lease” both describe an arrangement in which a tenant leases the land for several decades while owning and operating the building constructed on that land. Instead of purchasing the land outright, tenants typically secure 50 to 99-year lease terms, pay ground rent to the landowner, and take responsibility for developing and maintaining the improvements. In New York City, this structure appears in office towers near Grand Central Terminal, mixed-use buildings around Bryant Park, and residential or commercial projects in waterfront and cultural districts, where land is frequently held by public authorities, nonprofits, estates, or long-standing private owners.
Ground lease and land lease arrangements can be tailored in several ways, and a commercial real estate attorney in New York plays an important role in distinguishing subordinated from unsubordinated leases, clarifying which party’s interests rank ahead of a lender, and addressing how financing interacts with long-term lease rights. Subordinated ground leases may allow a lender’s mortgage to take priority over the landowner’s interest in the event of default, often in exchange for higher rent and the prospect of more intensive development. Unsubordinated structures preserve the landowner’s senior position but can create additional hurdles when tenants seek construction financing or refinancing for a mature asset.
The legal and financial consequences of these structures extend well beyond the initial negotiation. In many New York City land lease buildings, ground rent is scheduled to reset at fixed intervals based on appraised land value, with some leases recalculating every 5, 10, or 15 years and others at longer milestones such as the 25th, 33rd, or 49th year of a 100-year term. These rent resets can significantly influence maintenance charges in co op and condominium projects, shape long-term affordability for residents and commercial tenants, and affect property values as key reset dates approach. Careful review of renewal options, end-of-term provisions, and the allocation of tax, repair, and compliance obligations is therefore essential for both lessors and lessees considering participation in ground or land lease structures.
Disputes related to ground and land leases in New York often arise from unclear escalation formulas, disagreements over repair and capital improvement responsibilities, or conflicts involving zoning, building code, and environmental rules. In Manhattan, many of these matters are heard in the New York County Supreme Court, including its Commercial Division, and may intersect with the work of agencies such as the New York City Department of City Planning or the Department of Buildings. Thorough drafting at the outset, combined with ongoing legal guidance, can help parties address potential points of friction before they escalate into litigation.
About Avenue Law Firm:
Avenue Law Firm is a New York-based real estate law firm representing local and international clients in residential and commercial transactions across Manhattan, Brooklyn, Westchester, and Southampton. The firm’s attorneys handle commercial acquisitions and sales, co op and condominium matters, leasing, development transactions, and related real estate disputes throughout the New York metropolitan area. Led by founder and managing partner Peter Zinkovetsky, the firm provides strategic guidance at every stage of the real estate life cycle, from term sheet and due diligence through closing and post-closing matters. Parties seeking counsel from a commercial real estate attorney in New York regarding ground leases, land leases, or other high-stakes real estate matters can contact Avenue Law Firm at (212) 729 4090 or visit the firm’s website to request a consultation.
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Email: peter@avenuelawfirm.com
Website: https://avenuelawfirm.com/
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Company Name: Avenue Law Firm
Contact Person: Peter Zinkovetsky
Email: Send Email
Phone: (212) 729-4090
Address:505 Park Ave Suite 202
City: New York
State: New York 10022
Country: United States
Website: https://avenuelawfirm.com/