How does “build to suit” land leasing work? If structures are built on leased land, aren’t they then owned by the lessor after the lease period ends? What is the advantage of this arrangement?
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Leasing something is kind of in-between renting and owning. You agree to rent something for a set period of time and at the end of that time you become the owner of that thing. But if you decide that you do not want it, that you cannot afford it, or otherwise decide to stop making payments before the end of the lease period/completion of the total amount owed you do not retain ownership. Instead you walk away like a common renter and the original owner can then lease, sell, or rent to someone else.
The advantage of this is that for a time the original owner has steady income more reliable than a common renter.
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