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Navigating the Intersections of Commercial Real Estate and Eminent Domain Actions

By Ellen Smith and Elizabeth Story
July 01, 2024

Commercial real estate attorneys are in a unique position of negotiating on behalf of their clients for a finite resource in many states: land. Given that new land cannot be generated (outside of some island creations), constitutional protections, state laws and local ordinances that govern property rights attempt to balance those rights with public policy.

Attorneys must strike a balance between navigating those rights while anticipating future needs and issues that may arise for their clients' ownership rights and business (and personal) needs. But how do you best navigate today around a completely unknown future impact that may result in uninsurable loss and damage to a property?

This is the conundrum of condemnation as the exercise of the power of eminent domain. For real estate attorneys, knowing how to navigate around eminent domain actions in the midst of various transactions and operations is critical to best position clients for the future condemnation conundrum.

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