These are difficult times to ascertain values. Residential values have fallen from 30 to 60 percent of the “abnormal” peaks seen a few years ago. In the past six months, previously flat retail/commercial rental rates have fallen as much as 35 percent in many areas. The decrease leads to even more substantial losses in value, given the retention of fixed costs in the face of decreasing variable rents.
In the condemnation setting, most jurisdictions utilize a date of taking premised upon the date in which title vests. Jury instructions contemplate the valuation as of a specific date. This presents a situation in which the potential for a much lower value, premised upon the value of a specific property on a specific date, exists. Yet, for the parties, precise relocation as of the date does not occur.
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