No matter what land or property the government or other entities target for public use acquisition, they must compensate the affected owners accordingly. However, owners receive varying compensation depending on the nature of their property.
The government primarily considers a property’s fair market value when determining just compensation. But there is more to properties than their market value, especially when the property involved is commercial.
Partial acquisition’s effect on business operations
If the government acquires a part of a commercial property, its project will likely affect existing business operations. Some examples are obstruction of access to the property or distraction to the business’s daily operations. These can discourage clients and customers from visiting the business, which could result in damages or losses.
Hence, it is essential to consider the partial acquisition’s effect on business operations when settling with the government for just compensation.
Full acquisition’s effect on future profit
In case of full acquisition of a commercial property, owners should consider the loss of future profit when settling just compensation. Businesses with stable profits, loyal clients and great potential have much to lose by letting the government take their property for public use. Even if a business reopens in another location, it is unsure whether it would make the same profit it would have if it stayed in its original property.
Knowing your worth
In eminent domain cases, the government or other entities will try to offer property owners an agreeable compensation for their properties. Without prior knowledge about eminent domain, most owners will accept the offer without settling. This results in owners receiving an amount less than what they should receive based on the circumstances.
If you are a property owner facing eminent domain acquisition, you can consult with an experienced legal representative before making hasty decisions. Properly understanding the law and your rights will help you pursue the best compensation offer for your property.