What is it called when a private company owns and runs a building on land that's not their own? For example, Trump with Empire State Building. Anyone know the pros/cons to doing this? Also do you know where I can find proposals for such a thing. I've been challenged by the local mayor to come up with a tourism development plan for property 100 meters from beach. The property is 1.5hectacres or 3.5acres. I'm thinking a resort spa hotel with stores around. I need to start my research, figure on a project plan for all this <<< appreciate any input!!! Thanks-
2007-03-23 05:17:30 · 4 answers · asked by expat g 2 in Business & Finance ➔ Renting & Real Estate
This is called a land or ground lease. This is a common practice in NYC. It's a difficult task to find how much you should charge to rent the land. You can try and find other land leases in the area by talking to other land owners, agents, tenants. Another approach is to get an appraisal of the property and ask for a fair rental value of the land. They would find the value of the land and multiply it by the cap rate to arrive at the land value. I would first decide wether or not you want to sell the land or rent. Either way you should get an appraisal done on the property to figure out the value. If you decide to rent it then I would rent the land for 5 years at a time and ask for a percentage of gross revenue (percentage rent). If you want to develop it yourself you should definitely look to what type of project would result in the highest and best use of the property. First you have to find out what can legally be built on the property (get a copy of the zoning ordinance) and go from their.
2007-03-23 11:46:09 · answer #1 · answered by tianaramal 4 · 0⤊ 0⤋
This doesn't fully answer all your questions, but the basic problem with building on land you don't own is that you can't control what the owner does with the land. They can sell it. They can decide they want to build there own thing on it. Then can decide to put up blockades to keep your customers from getting into your builder. Typically, the land owner has the right to enter the property (including your building) at any time.
Therefore, you need a clear contract about these sorts of things. At that point, you're basically talking a lease situation.
2007-03-23 05:28:03 · answer #2 · answered by Jay 7 · 0⤊ 0⤋
You have to lease the land to the company that is improving the lot. Otherwise why bother they could get ripped off. You many have to build to suit and lease building and property.
2007-03-23 05:27:54 · answer #3 · answered by hvykey 3 · 0⤊ 0⤋
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2016-10-19 10:36:43 · answer #4 · answered by ? 4 · 0⤊ 0⤋