Real Estate & Property Law

Property Valuation

By Alan Ackerman

One should question this Washington business article explaining how Kohl's is having a difficult time finding a large enough space to acquire for lease in the urban center of the District of Columbia.  One has to wonder whether the value of the properties being assembled is not effectively the market value at the sale price or fair market value to the final user.  Assuming a fair market value transaction, if one peels off all the tax benefits and tax payments, it may lead to a far different value than the ridiculously low appraisals of large tracts in urban centers.

Washington Business Journal

Unlike office tenants that are usually facing expiring leases, retailers looking to add new stores generally are able to wait for the right opportunity. Kohl's has clearly taken its time in D.C. It showed interest in Southeast's Skyland development a couple of years ago, but has not pursued it since. Leases can't be signed at Skyland until the city completes its effort to control the site through eminent domain litigation.

Still, it may already be too late for Kohl's to restart those discussions with Skyland, which will be developed by The Rappaport Cos. and William C. Smith & Co. The project has room for two large anchor tenants — and Wal-Mart and Target have both expressed interest in the site.

 

Full post as published by National Eminent Domain Blog on August 09, 2010 (boomark / email).