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lsuguru
LSU Fan
Lake Charles
Member since Aug 2007
1716 posts

Building a permanent structure on leased land questions
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


cgrand
New Orleans Pelicans Fan
HAMMOND
Member since Oct 2009
28599 posts

re: Building a permanent structure on leased land questions
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 at 5:40 pm


jrhoad1
LSU Fan
Baton Rouge
Member since Oct 2009
26 posts

re: Building a permanent structure on leased land questions
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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Sidicous
LSU Fan
Middle of Nowhere
Member since Aug 2015
15371 posts
 Online 

re: Building a permanent structure on leased land questions
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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