Understanding Right of Way and Eminent Domain in Commercial Real Estate

Right of Way and Eminent Domain are key concepts in commercial real estate, often coming into play during public projects and infrastructure development. These legal processes are essential for government entities to carry out necessary public works, but they also have significant implications for property owners. Understanding how they work is crucial for both sides to ensure fair and successful outcomes.

Right of Way allows government entities or utility companies to access private property for specific purposes like building roads or installing utility lines. For example, if a city needs to widen a road or run new power lines, it might need a right of way through a piece of privately-owned commercial property. Property owners usually receive compensation for this, but the process can involve complex negotiations and careful consideration of how the right of way affects the remaining property and its future potential. For government agencies, it’s important to handle these agreements with fairness and transparency, while property owners need to be aware of how such agreements might impact their property’s value and development plans.

Eminent Domain gives the government the authority to acquire private property for public use, such as for highways, schools, or utilities, with just compensation to the property owner. In commercial real estate, this can be a sensitive issue, as it can disrupt business operations or alter development plans. The process starts with an appraisal to determine the property’s fair market value, which serves as the basis for compensation. Property owners may sometimes challenge the valuation if they feel it doesn’t fully account for their losses or future opportunities. Both sides need to approach this process carefully, ensuring that public needs are met while respecting the rights and interests of property owners.

For government entities, managing Right of Way and Eminent Domain processes is essential for moving public infrastructure projects forward. These actions need to be conducted in a way that is fair and clear to avoid conflicts and delays. On the other hand, property owners need to understand the financial and legal implications of these processes to protect their investments and ensure they receive fair compensation. Working with knowledgeable appraisers and legal experts can help both parties navigate these challenges more smoothly.

At LPA, we specialize in working with both government entities and property owners to help them through the complexities of Right of Way and Eminent Domain. Our team provides accurate property valuations and strategic advice to ensure fair outcomes for everyone involved. Whether you’re a government agency working on a public project, or a property owner affected by one, LPA is here to help you navigate the process with confidence. Contact us today to see how we can assist with your commercial real estate valuation needs.