I am looking at commercial real estate in LA area and there are a few retail properties with pretty decent cap rate - 8%+ net but they have land leases (running 20+ years into future). Should I consider them or not? Why? I am used to SFR real estate so far and commercial is new. And "not owning the land" part of the investment makes me scared. What if the landlord doesn't renew the lease after 25 years? Or ask for an exorbitant raise? Will my investment go down the drain? Can I buy out the land part too? What should be the pricing on the land in such a case (say I am paying 10k in monthly rent to the landlord. How much should I offer or what would the landlord expect to sell the land rights)? If these questions are already answered, please link it since I wasn't able to find them myself. Many thanks in advance.