"UCLA Anderson School of Management professor Eric Sussman says it may seem 'counterintuitive that two separate entities can own the land and the physical improvements on top of the land.'
"But with real estate values soaring, more landowners and property developers are entering into ground leases, separating valuable land and location assets from the structures that sit on top of them.
"'Any time you have a sustained period of economic growth and strong economic fundamentals, you’re going to have the impetus as an owner to sell and take advantage of this strong economy,' Sussman said. 'If you don’t want to actually sell the land … you can enter into a long-term ground lease.'"
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