How do you value a ground lease ? How do you negotiate an increase to the ground lease?

In General Area - Asked by Will R. - May 3, 2009
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Steve G.
Highlands Ranch, CO

We have done a number of Ground Lease projects and sold several over the years. All ours are 99 years in Length so we used a simple CAP rate valuation. I would expect all Ground Leases to be valued the same way regardless of term. Increases vary by property and client type - we have done 3 year adjustements based upon CPI but again we have long term leases and they are all NNN. Hope this Helps. You can check our concept out at

May 5, 2009
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