Ground lease-based land use system versus common interest development

In recent decades, we observe brisk growth of ground lease-based land use systems, such as shopping malls, and Common Interest Developments in retail and residential real estate, respectively. I argue that the ground lease systems is an efficient response to the hold-up problem in urban land use because of two facts: the bundled consumption of land and collective goods, and landowners' limited ex-post mobility. It incorporates the core insight of Henry; George view with Tiebout competition. But, due to bundled consumption, different characteristics of retail and residential real estate determine the dominance of the ground lease systems and CIDs, respectivey..