Industrial properties will often have unique needs relating to access, location and regulation. Such concerns may be overlooked by the condemning authority when assessing the property’s value or the impact of the taking on the property’s utility. Some specific concerns of valuing industrial property in condemnation include identifying the property’s highest and best use, valuing fixtures and machinery, environmental considerations, zoning considerations, and determining obsolescence. Additionally, another consideration is whether the owner of industrial property should receive fair market value or be compensated to the full extent of the loss and what prevailing law allows.
When land is taken using the power of eminent domain, the condemning authority takes title to everything attached to the land, whether classified as buildings or fixtures. In eminent domain, a property owner or tenant may receive compensation for the taking of trade fixtures, equipment, machinery and other use-specific improvements made to a property. Generally, trade fixtures are items that are attached to the real property, are adapted or applied to the use of the realty to which they are connected and are intended to be permanent – machinery or equipment installed specifically for use on the property. The compensability of trade fixtures in condemnation differs from state to state and the claim for compensation may be made by either the landowner or the tenant. For industrial landowners and tenants, the guidance of experienced condemnation counsel will be essential to maximize just compensation and minimize impacts to the property and any businesses operating at the site.
Case Studies – Condemnation of Industrial Properties Using the Government’s Eminent Domain Power
Please note: The just compensation awards received by industrial landowners in the above case studies are samples of the results Owners’ Counsel of America attorneys have achieved for their clients. While we can not guarantee the same or similar result in every case, this information is presented to assist you in understanding possible scenarios that can affect your property rights as well as to demonstrate the skill of OCA lawyers. The outcome of your case will depend upon its particular facts and circumstances. It should not be assumedthat your case willconclude with a result similar to the case studies above.