Eminent Domain

Eminent domain is the legal power of government entities to take private property for public use, provided that the owner receives just compensation. In commercial real estate, this can affect properties needed for infrastructure projects such as highways, transit lines, utilities, or public facilities.

Property owners subject to eminent domain proceedings have the right to challenge the government’s valuation and negotiate for fair compensation. The process, sometimes called condemnation, can significantly impact surrounding property values and development plans, making it an important consideration in CRE due diligence.