Home / Property Types / Investment property and eminent domain in Florida

Property Types

Investment property and eminent domain in Florida

Rentals and held land, where income and future use carry the value rather than occupation.

An investment property is held for what it produces or what it will become. A taking interferes with both, and the questions it raises are different from those facing an owner occupier.

On a let property the income stream, the lease terms and the tenant position all interact with the claim. On land held for development, the question is what the parcel could have supported before the taking and what it can support afterwards.

The short answer

Value here rests on income and on future use. A take that reduces either is doing damage even where the physical footprint acquired is modest.

What an investment take affects

Fair market value

Highest and best use, which is the centre of a development land claim.

Partial taking

A strip from a held parcel.

Severance damages

Effects on what remains developable.

Remaining property

The residue and what it will support.

Business impact

Where a business operates on the property.

Commercial property

Let commercial premises.

What was the highest and best use?

On development land this assumption is the claim. An appraisal treating the parcel as its current use may understate it substantially.

Does the remainder still work as a scheme?

Losing a corner can remove access, parking or density that a scheme depended on.

What do the leases say?

Condemnation clauses, rent abatement and termination rights differ between leases and affect who claims what.

Is the tenant a business of standing?

Section 73.071(3)(b) business damages may arise, and the tenant position interacts with yours.

What happens to the income during construction?

Void periods and rent concessions caused by the project are worth documenting as they occur.

Related resources

Frequently asked questions

My tenant pays the same rent. Have I lost anything?

Possibly. Value reflects what a purchaser would pay for the property with the project built, which takes account of future lettability as well as the passing rent.

The land is not developed yet. How is it valued?

Through its highest and best use at the time of the taking, which is why that finding deserves close attention.

Who claims, me or the tenant?

It depends on the lease and on what is being claimed. Real estate compensation and business damages can sit with different parties. Take advice early.

Understand your property situation before the next step

Explore Florida resources matched to your property type, the project affecting it, and the stage you have reached.

Get Help