Why Land Leases Are the Hidden Gem of Commercial Real Estate

Lucas and Luna explore why ground leases — where an investor owns the building but not the land — are quietly becoming a favorite structure for pension funds, endowments, and yield-hungry institutions. They break down the economics: how a 99-year lease on a downtown site can produce equity-like returns with bond-like stability, why the University of California's endowment has been piling into them, and what happens when the lease finally expires. They also walk through the real risk: the 'reversion' cliff where a fully-depreciated building plus the land revert to the landowner. No jargon, just the mechanics and the money. The episode also covers how individual investors can get exposure through a growing set of publicly-traded net-lease REITs that specialize in ground leases. By the end, listeners will understand a structure that institutional capital has quietly loved for decades but rarely gets airtime. #GroundLease #LandLease #CommercialRealEstate #NetLeaseREIT #PensionFunds #Endowment #UniversityOfCalifornia #RealEstateInvesting #TripleNetLease #PropertyRights #LandOwnership #CashFlow #PassiveIncome #InstitutionalInvesting #Business #FexingoBusiness #BusinessPodcast #RealEstateStrategy Keep every episode free: buymeacoffee.com/fexingo