Tampa, FL, August 19th, 2025 –Written by Nick Cannella
Introduction: Choosing the Right Exit Strategy
Owning land in Florida comes with big opportunity—but also big decisions. One of the most important is whether to sell your land outright or lease it to generate long-term income.
This choice can have lasting financial, legal, and tax implications. While land sales are more straightforward and immediate, land leases are becoming increasingly popular, especially as solar farms, cell towers, RV parks, and agriculture operations seek long-term ground use agreements.
At Eshenbaugh Land Company, we regularly help landowners evaluate both options. In this blog, we’ll break down the pros and cons of land leases versus land sales, look at who each strategy is best suited for, and outline what Florida landowners should consider before moving forward.
What Is a Land Lease?
A land lease—also known as a ground lease—is a long-term rental agreement where the landowner retains ownership of the land while granting a tenant the right to use it for a specific purpose.
Land leases are commonly used for:
- Solar farms or utility-scale energy projects
- Cell tower installations
- RV parks or campgrounds
- Commercial agriculture
- Retail pads or build-to-suit projects
- Industrial laydown yards or parking
Lease terms often range from 10 to 99 years, and may include fixed annual payments, revenue sharing, or performance-based rent structures.
Option 1: Selling Your Florida Land
Pros of Selling
- Immediate cash payout: Convert your asset into liquidity right away.
- Avoid future risks: You’re no longer responsible for taxes, maintenance, or market shifts.
- Simplifies estate planning: Selling eliminates complications for heirs or partners.
- Capitalize on hot markets: If buyer demand is strong, now may be your best time to exit.
Cons of Selling
- No future upside: Once it’s sold, you can’t benefit from appreciation or rezoning value.
- Taxable event: Capital gains taxes may apply, depending on your basis and exemptions.
- Hard to reverse: If you later regret selling, it may be too late to buy back in affordably.
Option 2: Leasing Your Florida Land
Pros of Leasing
- Steady income stream: Long-term leases can provide consistent revenue with minimal effort.
- Retain ownership: You still own the land and benefit from appreciation.
- Tax advantages: Lease income may qualify for different tax treatment than capital gains.
- Great for generational planning: Create passive income for heirs without selling the land.
Cons of Leasing
- Delayed returns: You don’t receive a lump sum up front.
- Ongoing obligations: You may still need to pay property taxes or handle disputes.
- Potential complications: Lease structures must be negotiated carefully to protect your interest.
- Market shifts: Demand for your lease type (solar, cell tower, etc.) may change over time.
When Is Selling the Smarter Move?
You might want to consider selling if:
- You need immediate cash to reinvest, pay off debt, or fund retirement.
- The property has maximum value now due to zoning or location trends.
- You no longer want to manage, monitor, or maintain the land.
- You’re facing a buyout, divorce, or estate situation that requires asset division.
- You’re nearing retirement and want to simplify your portfolio.
In these cases, a well-marketed sale can help you exit cleanly and capture full value.
When Is Leasing a Better Fit?
Leasing may be the better strategy if:
- You want to retain ownership for future family use or legacy purposes.
- Your land is being targeted for solar, agriculture, RV, or cell tower use.
- You’re in no rush to sell but want to generate passive income.
- You have zoning constraints that allow temporary or limited uses but not immediate sale.
- You want to defer taxes and diversify your revenue stream over time.
Some landowners lease their land while pursuing future entitlements to increase long-term sale value—creating income while holding for the right buyer.
Legal & Contract Considerations for Leasing
If you choose to lease, get expert help drafting and reviewing the agreement. Consider:
- Right of first refusal or buyout options
- Access and maintenance terms
- Permitted uses and subleases
- Environmental indemnities
- Insurance requirements
- Termination and default provisions
Every lease should be reviewed by a real estate attorney to ensure your interests are protected long-term.
Working With a Florida Land Broker to Choose Your Best Option
Whether you sell or lease, working with a specialized land broker is key. At Eshenbaugh Land Company, we:
- Help determine highest and best use
- Provide Broker Opinions of Value for both sale and lease scenarios
- Connect landowners to qualified lease tenants or serious buyers
- Use GIS, FLU mapping, and entitlement analysis to increase your property’s appeal
- Represent you throughout negotiations to maximize value
Final Thoughts: Know Before You Sign
Every landowner’s situation is unique. For some, a clean sale provides the freedom they’re looking for. For others, a lease creates long-term stability and income for future generations.
The best decision depends on your financial goals, risk tolerance, tax planning, and legacy considerations.
Considering Selling or Leasing Your Florida Land? Let’s Talk.
Whether you want to cash out or create income, our team is here to help.
Call (813) 287-8787 or visit www.thedirtdog.com to connect with a land expert today.
We’ll help you map out your best move.