With commercial-loan delinquencies at a 10-year high and lenders tightening terms, developers are turning to long-term ground leases to keep projects alive without the upfront land purchase. By leasing raw land for 20–99 years, a builder can lock in below-market “dirt rents,” spread escalations over decades, and pivot uses if market conditions change.

Occupiers scouting expansion sites can leverage ground-lease deals to test locations with less balance-sheet exposure—while negotiating rights of first refusal if the land ever comes up for sale.