Reversion is the value or ownership interest that returns to the landlord at the end of a ground lease or long-term lease term, including any improvements constructed by the tenant.
Reversion matters in ground leases because the land, and often the building, comes back to the landowner when the lease ends. The reversion value depends on the land's worth at that time and the condition of the improvements. For investors it is part of the total return alongside rent: a long lease with a valuable reversion is more attractive than one where the building would be worth little. Review what condition the tenant must leave the property in and who owns the improvements.