A CLT acquires land and maintains long-term ownership. Commercial CLT structures can include lease models, ownership models, or other models, such as cooperatives or co-working spaces. With a lease model, the CLT owns both the land and building and leases both to commercial tenants. An ownership model allows tenants to purchase their commercial space through various mechanisms, such as a long-term ground lease or lease-to-own option. A ground lease typically includes provisions that restrict the building’s sale price so it remains affordable. In a cooperative structure, business owners buy shares that entitle them to partial ownership with variable stakes of a property. With a co-working model, members pay to use shared space provided by the CLT.

Because it takes a considerable amount of capital to purchase land, many CLTs partner with established nonprofits and public entities to fund their purchase. CLTs must incorporate as nonprofits, a process that includes filing articles for incorporation and adopting by-laws. To plan for commercial CLT development, the lead organization should engage business owners and residents to determine their retail needs and preferences. The CLT’s mission and goals should respond to what commercial activities the community says it wants but also ensure long-term legal and financial sustainability.