I'm trying to start a new business that will require and office/shop on it. Location wise the only luck that I'm having is with raw pieces of land for lease which I've got no experience with. Would you sink a bunch of money into building something on leased land or try to find something else. Is the new building change the term of the lease any or factored into the price? Also if I ever went to sell it I'm sure I'd have a hard time selling a office building on leased land. Any advice is appreciated. Thanks

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Posted by cgrand

HAMMOND

Member since Oct 2009

38768 posts

Posted on 9/13/21 at 5:39 pm to lsuguru

see if the landowner will build to suit and lease to you triple net. you do not want to "own" an immoveable on land you do not own

This post was edited on 9/13/21 at 5:40 pm

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Posted by jrhoad1

Baton Rouge

Member since Oct 2009

32 posts

Posted on 9/15/21 at 7:01 am to cgrand

You could do a long term ground lease. Have an initial term of a certain period with several 5 year renewal options at your election. You would own the building during the term of the Lease and can depreciate the building.

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Posted by Sidicous

Middle of Nowhere

Member since Aug 2015

17162 posts

Posted on 9/15/21 at 7:35 am to lsuguru

Hawaii is a good reference point to see for examples of what you ask.

I have family there since the 1950's. Originally they literally purchased property. Later the State passed laws preventing non Hawaiians from purchasing land. So 99 year leases became popular. (the State later reverted back to land purchase and this is how celebs and corporate types own entire islands now.)

Look into a 50 year+ lease if you want to build.

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