A ground lease is a long-term lease that a landowner grants to a developer or tenant who builds a building at their own expense. This arrangement differs from typical leases because the landowner still has full control over their property, even though the tenant builds what they want. Owners often prefer a ground lease to an outright sale because it provides a secure source of income. Another important factor to mention is the tax benefits: it avoids the capital gains tax that comes with a sale. Owners may also want to pass that land down to their family for many years. There's only so much land in NYC, and every piece is valuable. That's why owners hold one of the city's most desired assets for generations. A big misconception many people have is that ground leases are owned by the tenant because they built the building. The landowner keeps ownership of the land while giving the tenant the authority to build on their property.